A vacant land is the best for your dream house. Explore more about vacant land loans in this blog.
What is Vacant Land?
In simpler terms, a vacant land loan is an empty land without any structures. The category of vacant land includes:
1. Private Land
Private land is the most suitable as it does not have any permanent structure built on it yet. It is owned by individuals instead of the government or municipal, though it abides by the law.
2. Raw land
It is also owned by individuals but does not even have basic utilities like water and power. It does not have any infrastructure.
3. Crown Land
Crown land is owned by the federal government or provincial and it’s similar to raw land as it does not have basic utilities like power and water.
How Can You Mortgage Vacant Land?
● Land loans could be one of the options but it includes higher interest rates and down payment.
● A home equity line of credit could be a good option if you are a current homeowner with equity as here you will be paying a lower monthly rate.
● If you are planning to build a new home on vacant land go for a construction mortgage as this will offer you the funds gradually as your project meets a certain deadline.
● Go for an agricultural loan if you want to build a farm on the vacant land.
Meet with a Broker Today
Finding suitable vacant land loans by yourself can be challenging so to ease your burden consult a financial advisor. Brokers who have a good understanding of vacant land loans can help you understand which loan will meet your needs and requirements. They also have connections with lenders who can help you get suitable land to close your deal.
In conclusion, it’s important to have a good understanding of the need to buy vacant land, and then compare the various ways you can acquire vacant land loans to meet your financial needs. Rather than doing everything by yourself seek professional advice.
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