Land Loans

Hard money loans are an excellent solution for those having difficulty securing land loans. In the world of real estate loans, it is generally easier to find financing for properties with homes or buildings already built than it is to find a loan for a vacant lot. Conventional lenders, such as banks, are often wary of lending money for properties where the collateral, namely the land, is not being used.

The risk of investing in such properties can be higher for lenders, as it is easier for the owners to simply walk away. To compensate for this, land loans usually have higher interest rates and require larger down payments than traditional mortgage loans. The type of rates available for these speculative properties will depend on many factors including what the owner plans on doing with the land, the land itself, as well as the timetable for any construction or improvements.

Some land loans are easier to acquire than others. Loans for properties in rural or remote areas or for raw land without sewers, utilities or streets can be more difficult to secure. Borrowers, on the other hand, who are looking to purchase property in a developing area or who already have construction plans in place may have a slightly easier time securing a loan.

One solution is to approach hard money lenders. Many hard money lenders specialize in land loans. By working through a nationwide network like Hard Money Direct, you can find the best rates possible in a surprisingly short amount of time.