If you’re eyeing a bit of land to construct a residence on or even utilize for business purposes, don’t anticipate a old-fashioned mortgage company to invest in the purchase. You’ll probably need to submit an application for a land loan.
Land loans aren’t since typical as home loans, so might there be fewer choices. And also you could face with a more impressive deposit requirement, an increased rate of interest much less time for you repay the loan than you’ll with a home loan.
It’s important to know what you’re getting into and how to reduce your costs if you apply for a land loan.
What exactly are land loans?
A land loan can be used to invest in the purchase of a tract of land.[……]