Land and Construction Loans
A land loan is a type of mortgage that borrowers obtain to purchase a vacant block of land where the borrower can build a new home later. We need to split the loan into land and construction loan prior to purchasing land and home packages. Before you apply for a land loan, here are some important things to consider when looking for a loan to purchase land.
A loan for land purchase is not the same as a regular home loan, and it usually comes with different costs and conditions. Land loans typically have higher deposit requirements and higher interest rates, as most lenders see them as a riskier proposition than a traditional home loan. Many factors play an important role for the assessment of a piece of land such as location, access, and zoning regulations of a piece of land.
Difference between construction or land loan
Construction loans set a time limit on when the house must be completely built – usually a deadline of one to three years. Land loans do not have this time pressure, so you don’t need to build straight away. Construction loans also typically have a different process for releasing money compared to a land loan. The funds are progressively ‘drawn-down’ in stages as the construction proceeds, whereas for a land loan it is given all at once.
Your dream home is one step closer with our construction loan. We listen to your needs and create a loan to suit you. What’s in it for you?
We may be able to help you secure the refinance you need. Call us at 0280840286 or fill up a Free Assessment Form.