Land Financing Mortgage

A land loan is a specialized type of loan that provides you with the funds needed to purchase a piece of land on which you can build. However, it can be more challenging to qualify for a land loan compared to a traditional mortgage. This is due to the fact that lenders have a harder time reselling undeveloped land compared to developed property such as a house. As a result, land loans typically come with higher interest rates and require larger down payments. It is important to keep in mind that although undeveloped land may have a lower initial cost compared to developed land, securing financing for it can be more challenging.