Borrowing Money Against Land

Banks like to make loans against collateral that not only has value but can be easily converted into cash for them.

Borrowing money against land.

Local institutions know the local real estate market. Borrowing money against your property. In this case an equity loan on that vacant land can allow you access to that capital. Using your existing mortgage to borrow money to buy land.

You can borrow up to 80 of the value of farm buildings or land. Normally you would to do a self build mortgage which would also include funds to cover the build cost however your situation sounds a little more unusual if the builder is paying for the cost of the build. Land equity loans. With vacant land you have money tied up in a property that you may have other uses for.

Local banks and credit unions. Borrowing money is often a prerequisite to buying rural land and it may be more difficult to find financing for rural land than residential property. To increase your chances of borrowing against land look into construction loans and land equity loans or lines of credit at non bank lenders. It takes the right type of land a healthy dose of planning and a multi pronged approach to successfully use your land as security for a loan.

Any property used as security which may include your home may be repossessed if you do not keep up repayments on your mortgage. There are numerous sources of money with which to purchase rural land. Whether it is a commercial or residential property fundingsecure can help you with your funding requirements through our peer to peer lending platform. Buying a parcel of land either as a long term investment or on which to build a new home is not quite as simple as you might think.

Loans from 50k. If you don t already live in the area your local lenders and online lenders can be hesitant to approve a loan for vacant land. Start by inquiring with financial institutions located near the land you plan to buy. While it s possible to borrow against vacant land it s usually not easy.

Benefits of borrowing from us. Unless you re in a position to pay cash up front you ll need to borrow some money to finance the purchase. But borrowing money to purchase raw land is not quite that straight forward. Because of our business model we have virtually unlimited funds available for the right property loans.

Lending fees and associated borrowing costs apply and you can add these to the loan. Borrowing money against vacant land is an uphill battle more often than not but it is possible under just the right circumstances.