Author Box
Articles Categories
All Categories
Articles Resources

How to Get Financing for Land and Lots

May 01, 2012 | Comments: 0 | Views: 134

Residential neighborhoods throughout the country are only continuing to grow and what this means for those looking to build their own homes is the opportunity to purchase the lot of their dreams. Since this is something the average person only does once in a lifetime you may not be sure as to how to start and where to begin when it comes to financing for land or home lots for building. When it comes to finding financing for residential land it is quite different in comparison to simply applying for a mortgage on an already built home. Today the interest rates are actually quite high with a very low loan to value ratio.

Research is really the number one key when it comes to finding great rates for land and lot mortgages. One of the best rates in the country rate now is lending to 38 of the states with 80% loan to value ratio and 3% interest rate; this is the type of find you have to jump on when they come along. These figures are certainly not average. Today the average loan to value ratio is closer to 60% with interest rates in the range of 6-7%. This is a significant jump from the numbers posted above and in some cases these higher percentages can make or break your dreams of buying your own lot and building your own home.

In order to be approved for one of these hard to get mortgages you will have to have several requirements met. First, you must have a satisfactory income to debt ratio of no more than 45%, the ability to come up with the down payment, 20% if you can find a good lender with good rates but this can be up to 40% in some cases and a credit score in the 700s to qualify without any problems. Also as a first time buyer it is important to note the other costs associated with your new purchase:

• Closing costs of about 1-2% of the entire loan amount • Appraisal fees ($400-$600) • Title fees

Many first time buyers are not aware of these additional costs and it can really harm your bank account when you do not budget accordingly.

Real estate professionals believe there is no better time than the present to be purchasing vacant land around the country. This aspect of the real estate market was hurt just as badly as residential homes and therefore there are many people around the country trying to unload their land lots to prospective buyers like yourself. In the past it was a profitable market to take vacant land and flip it but after the real estate market crash this business has become obsolete. Now is the time for home builders to find the lots of their dreams and begin building.

Start researching online and offline today to find the best lending deals serving your state or province and community in order to make financing a simple and profitable process. There are many qualified professionals to speak to.

For professional Calgary real estate services and listings, visit - the site is clean and informative, with details about St Andrews Heights Real Estate including Sunnyside Real Estate.

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Land Lots


Vacant Land


Real Estate Market


Home Lots

The documents are inevitable to assess your age, income, employment and residence. For the loan to be petitioned from the bank, you need the right procedure of application.The documents are

By: Simon Liva l Real Estate > Buying l November 20, 2012 lViews: 258

The main reason why people tend to be apprehensive about moving homes is that it entails packing everything in the home, transporting it and then unpacking it in the new home. The entire process of

By: Ringo Star l Real Estate > Moving Relocating l October 27, 2012 lViews: 211

There are a number of benefits to owning a second home. Buying to let is a long term investment. The property will usually accumulate value over time and also can generate rent on a shorter term

By: Alan Trotter l Real Estate > Investing in Real Estate l October 19, 2012 lViews: 241

Building a home, especially your first one, can be an incredibly daunting task - there are a number of factors, including budget and planning, that must be taken into account before any sort of

By: John K. Taylor l Real Estate > Building a Home l July 10, 2012 lViews: 333

When you're ready to sell your house, the first thing you'll probably do is find a real estate agent to help you through the process. It can be so inviting to seek out the discount Realtors who offer

By: W Josh Anderson l Real Estate > Selling l July 10, 2012 lViews: 263

You see the signs everywhere, especially in a strong economy: For Sale By Owner. For some reason, many people believe they'll do a better job of selling their homes without the assistance of a real

By: W Josh Anderson l Real Estate > Selling l July 10, 2012 lViews: 241

An article offering some top tips on investing in land and property in Brazil. Specific focus is given to legal requirements in order to avoid making costly mistakes.

By: Waseem Saddiquel Real Estate > Landl June 27, 2012 lViews: 246

If you are looking to invest in land for sale, take some time to research the property before you buy it. Read on to learn more.

By: Ace Abbeyl Real Estate > Landl June 22, 2012 lViews: 153

It can be exciting to look for land for sale to build a home on. Here are some important considerations for the land you choose.

By: Aloysius Aucoinl Real Estate > Landl June 20, 2012 lViews: 173

People always ask me why I don't focus more on buying and flipping homes rather than buying and flipping land? For me, the answer is simple.

By: Mark Podolskyl Real Estate > Landl June 13, 2012 lViews: 184

Before venturing out to look for a 'development site' it is important to do some homework. As we have seen you first need to decide which real property development market you'd like to try your hand

By: Ross Vocil Real Estate > Landl June 13, 2012 lViews: 172

Let's take a look at some of the risks of property development. Undertaking your first property development project is more demanding and involves more risk than buying your first investment property.

By: Ross Vocil Real Estate > Landl June 12, 2012 lViews: 190

Home staging has become one of the most sought after at home businesses within the USA today. If you have a passion for interior design than home staging may be the right business for you.

By: Carlos M Montesl Real Estate > Home Stagingl May 02, 2012 lViews: 158

The unfortunate scenario when it comes to home foreclosures is that you are literally cashing in on someone else's misfortune. Although this may seem unsavory, it is the nature of the real estate

By: Carlos M Montesl Real Estate > Foreclosuresl April 20, 2012 lViews: 186

If you find your home has been on the market for more than Ninety days and it is not selling or even has not had too many inquiries to speak of, it may be time to consider other options. Depending on

By: Carlos M Montesl Real Estate > Sellingl April 20, 2012 lViews: 126

Whether you are interested in starting your own business or simply buying commercial property as an investment to rent, it is important to know what you're getting into. Commercial real estate is

By: Carlos M Montesl Real Estate > Commercial Propertyl April 15, 2012 lViews: 134

If you're reading this article then you have recently decided to embark on the exciting adventure of building your dream home. Making this initial decision is not easy but the next task on your list

By: Carlos M Montesl Home Improvement > House Plansl April 09, 2012 lViews: 143

As a buyer in today's market it has never been more important for you to understand how each different type of sale works, and this includes for sale by owner. While the real estate market is still

By: Carlos M Montesl Real Estate > FSBOl April 01, 2012 lViews: 208

Discuss this Article

comments powered by Disqus