Land Loan
Are you looking to purchase a block of land to build your new home in the future or even hold for investment purposes and need finance then a land loan maybe for you?
A land loan is a type of home loan used to finance the purchase of vacant land or undeveloped property. Typically, this is done in order to build a house on the land in future, either as a home for you or as an investment property. It can also be the case that a buyer wishes to hold on to the land as an investment, to sell in future if the value increases. With a land loan, the block of land is used as security for the loan.
Land loans are different from traditional home loans used to purchase homes or buildings, as they are typically riskier for lenders. This is because land is considered a non-income-generating asset, and it can be difficult to sell if the borrower defaults on the loan.
As a result, land loans may require larger deposits and usually have higher interest rates compared to traditional home loans.
