Stewart Brown Jr – Mortgage Loan Originator – Purchase or Refinance
| Sometimes when potential home buyers are looking to purchase a home, they may also consider building one. The thought can seem perfect until future homeowners realize what it might cost to build a house. Though building a house can be expensive, there are many ways to make it more feasible for first-time homeowners. Land loans are one of these resources.
If you choose to build a house, chances are you might have to apply for a land loan.
A land loan – sometimes referred to as a lot loan – is used to finance the purchase of a plot of land. You can take out a land loan if you’re interested in buying a piece of land to build a home or to utilize for business purposes. The type you take out will depend on where you’re buying land and how you intend to use the land. A land loan is sometimes confused with a construction loan, which is another type of loan often used by people looking to build a house. So, what’s the difference? Typically, if you want to buy land and start building on it right away, you’ll want a construction loan. These short-term loans are intended for prospective home builders who want to get started on their project right away and already have everything planned and ready to go. Land or lot loans, on the other hand, are a better choice for future home builders who have a plan but may not want to jump right into building and financing a house immediately. If you have circumstances pushing your building project out a year or so (or you’re still getting your home plans together) a land loan is likely a better choice for you. You can also refinance an existing construction loan into a traditional mortgage after your new home is built, given the home is finished and you obtain a Certificate of Occupancy – whatever option works best for you. Types of land / lot loans include raw land loan, unimproved land loan, and improved land loan. |
| Sometimes when potential home buyers are looking to purchase a home, they may also consider building one. The thought can seem perfect until future homeowners realize what it might cost to build a house. Though building a house can be expensive, there are many ways to make it more feasible for first-time homeowners. Land loans are one of these resources.
If you choose to build a house, chances are you might have to apply for a land loan.
A land loan – sometimes referred to as a lot loan – is used to finance the purchase of a plot of land. You can take out a land loan if you’re interested in buying a piece of land to build a home or to utilize for business purposes. The type you take out will depend on where you’re buying land and how you intend to use the land. A land loan is sometimes confused with a construction loan, which is another type of loan often used by people looking to build a house. So, what’s the difference? Typically, if you want to buy land and start building on it right away, you’ll want a construction loan. These short-term loans are intended for prospective home builders who want to get started on their project right away and already have everything planned and ready to go. Land or lot loans, on the other hand, are a better choice for future home builders who have a plan but may not want to jump right into building and financing a house immediately. If you have circumstances pushing your building project out a year or so (or you’re still getting your home plans together) a land loan is likely a better choice for you. You can also refinance an existing construction loan into a traditional mortgage after your new home is built, given the home is finished and you obtain a Certificate of Occupancy – whatever option works best for you. Types of land / lot loans include raw land loan, unimproved land loan, and improved land loan. |
Reach out to me for further detailed information on Land / Lot loan programs.