Raw Land Hard Money Loans

Raw Land Hard Money Loans

Raw Land Hard Money LoansPurchasing land enables people to build the home of their dreams, and if you are thinking to buy land, it might be a difficult decision. As land is expensive enough, you’ll might have to look up for a mortgage lender to finance the purchase. But a better option will be to apply for a land loan. For the borrowers, land might seem a safe investment, but for lenders these raw land loans are risky. Due to this reason, the approval for the raw land hard money loans becomes a difficult and cumbersome process that other kind of hard loans. Custom Mortgage is a professional hard loan providing firm that holds expertise in offering exceptional outputs to global clients. Specialized in the raw land loans, hard loans, and raw land hard money loans, we assist the borrowers to find the right lenders for them and offer them the appropriate financing services. Custom Mortgage even underwrites loans in myriad cases where traditional banks and other lenders refuse to or are unable to approve a loan.

Our general requirements are:

  • Apartments with 5+ units
  • 90% CLTV or less
  • 15-30 year loan terms
  • Fast and friendly loan process

Understanding Land Loans

Land loans are a kind of credit that helps you in purchasing a vacant piece of land where you can build your home in future or a raw land on which you don’t have any plans to develop. As these kinds of loans tend to be riskier to the lenders, so borrowers don’t get as favorable terms as they get in other kinds of mortgages. It is even depicted that the raw land owners most likely stop making payments and leave the contract in between, and further, the land becomes difficult to resell. This is because the demand for a home is more than that of land.

So, the major fear of lenders is that if they give a raw land loan, will they get the money paid back completely on time or not. For this reason, before giving a hard loan or a raw land hard money loan, the lenders ask the borrower to make a substantial down payment and even implies high interest rates. While some raw land loans might have shorter repayment terms that other long-term mortgage loans.

Land Loans Programs at Custom Mortgage

You can get a wide range of land loan options to finance your land purchase, each of them has its own specifications, benefits, and requirements. At Custom Mortgage, we deal with a vast array of loan programs that can meet your financing requirements perfectly. Whether it’s a refinance, purchase, or the cash-out of land, we keep you covered in all cases.

Raw Land: When a person wants to purchase land for future development- either commercial farm or anything else, raw land loans are the best. Specifications of this loan program include:

  • No pre-payment penalties

  • Rates start at 2.9%

  • Land can be of any type- rural or suburban

  • Flexible payment dates

  • Minimum land size- 5 acres

  • Adjustable rate up to 10 years and fixed rate up to 30 years fixed rate

Commercial Land: These loan programs are made available regardless of the stage of development. Terms for these loan programs include:

  • No documentation

  • Terms for 12-36 months

  • Cross collateralization

  • Up to 50% LTV

  • No minimum credit score

  • Loan value: $500,000 to $20,000,000

Residential/Subdivision Development: These loan programs are for the ones who need to build or purchase land for building multiple residences (like multiple single family residences). These properties could be- raw land, entitled land, un-entitled land, residential subdivision, or vacant land. Terms for these loan programs include:

  • Terms from 12-36 months

  • Interest only options

  • Up to 50% LTV

  • No minimum credit score required

  • Closes within three weeks

  • Loan Value: $500,000 to $20,000,000

  • Loan types: Refinance, purchase, cash out, DPO, bank work out, foreclosure prevention, stalled residential subdivisions.

Hard Money Land Loan: A hard money loan is a short-term loan that is funded by private investors. Hard money lenders are concerned with property’s value rather than the credit score of the borrower. These kinds of loans come with terms for around 12 months, but it might extend to 2 to 5 years. Terms for these loan programs include:

  • Terms from 12-36 months

  • Interest only options

  • Up to 50% LTV

  • No minimum credit score required

  • Closes within three weeks

  • Loan Value: $500,000 to $20,000,000

  • Loan types: Refinance, purchase, cash out, DPO, bank work out, foreclosure prevention, stalled residential subdivisions.

Finding the Right Lender for a Raw Land Loan

Firstly, you need to find a suitable lender that deals with the loan and financing services you are looking for. Verify the experience they hold in the financing industry and check if they deal with trusted lenders or not. Rather you can rely on our experts who can assist you in finding the best suitable lenders to meet your loan requirements in the best way and offer you the best mortgage and financing services.

HUD FHA 223 (f)

  • Multifamily Properties
  • Up to 83%
    LTV
  • 35 YR Amortized
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Student Housing Most Popular!

  • Purchase / Refi
  • MAX CLTV 95%
  • Consruction
  • MIN Loan amount 1 Million
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Stated Income

  • MAX LTV 80%
  • All Property Types
  • Purchase/refi/Construction
  • MIN Loan Amount 500k
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