January 1, 0001
How much money do you have to put down:
Lot loans range from as little as 20% down to as much as 40% down depending on the amount of acres, credit score, loan size and if the parcel is classified as “improved” or “un-improved.”
Is there a maximum lot size for a Lot Loan:
The lot should be less than 10 acres, although slightly larger parcels may be acceptable if in a subdivision of similar parcels, and vacant lots of similar size have sold recently in the area.
Can there be an existing structure on the parcel:
No structures are allowed on the parcel, even if having virtually no value, or having no value attributed to them.
What about a lot that has a foundation already poured:
If the vacant lot has a foundation, this is probably acceptable, particularly if no work was done recently, and it is a slab foundation. Retaining walls may be allowed as well, depending on the situation.
I already own a lot on a Private Note, Can I refinance the lot:
Refinancing a vacant lot is possible. Typically these can be financed 65% to 70% of the current appraised value on a lot loan refinance. A refinance of these types of lot loans are particularly useful if the borrower is not ready to build, but faces a balloon payment on their current lot loan
What is the typical term of a lot loan:
Lot loans typically are fixed for 3 years, and then adjust annually the next 27 years, so they never have a balloon payment due.
– OR –
The other popular lot loan is a 15 year fixed, but this creates a much higher payment and typically has a similar rate to the 3 / 1 ARM products.
In case you haven’t found the answer for your question please feel free to contact us, we will be happy to help you.