How To Finance Your Next Land Purchase
Whether you plan to build a home, use land for agriculture or business, or hold onto it as a long-term appreciating investment, the borrowing process is not the same as traditional mortgage loans.
If your FICO score is below 650 and fewer financing options are available, owner-financing may be your best bet. However, if you have a strong credit history, you could save thousands of dollars through third-party lenders.
Going Local
Have you signed up with a local community bank or credit union? We recommend exploring this option first for a couple reasons. First, unlike national banks and lenders, community banks understand the local area and its real estate values.
Beyond that, they have a vested interest in local growth and development. So if you haven’t explored that route, go for it! Here’s a list of credit unions anyone can join. If you don’t have luck with local banks or credit unions, don’t worry, there are still great options available.
Government Loans
If you’re planning on buying rural / agricultural land, you may be able to secure a federal loan through the USDA. If you go that route and qualify for the loan, you won’t have to pay a single dollar down. Pretty exciting, isn’t it?
Known as Single Family Housing Direct Home Loans, it’s a fantastic option for lower-income buyers in rural areas who have limited financing options. These loans can be utilized to purchase land for building a home on.
Other Money-Saving Financing Options
With a little resourcefulness and determination, you’re going to find the financing you need. And if you’re looking to buy through Land Elevated, we’ve got your back no matter your credit score. That said, we want you to get the best deal possible.
Have a look at the financing options below for a variety of loans that can be used for land, including interest rates as low as 2.4%.
| Company | Allowable Loan | Term | Interest | Types of Loan |
|---|---|---|---|---|
| SoFi | 80% of property value | Home Loan 10,15, 20 & 30 years | Variable | Student Loan Refinancing, Medical/Dental Refinancing, Parent PLUS Refinancing, Personal Loans, Home Loans, Mortgage |
| Discover Personal Loans | Home Loan – $35,000 – $200,000 | Home Loan – 10, 15, 20 & 30 Years | Home Loan – 3.99% – 11.99% APR | Credit Cards, Personal Loans, Student Loans, Home Loans |
| Credible | Variable | Home Loan – 15 & 30 Years | Home Loan – 2.963% APR for 30-year fixed term, 2.404% APR for 15-year fixed term | Student Loan Refinancing, Student Loans, Personal Loans, Mortgage, Mortgage Refinancing, Credit Cards, Home Loans |
| Upstart | $1,000 – $50,000 | 3 – 5 Years | Variable: 8.69% – 35.99% | Credit Cards, Debt Consolidation, Student Loans, for Education, Car, Other Large Purchase, Relocation, Medical Bills, Taxes, Home Improvement, Vacation, Wedding, Bills or Rent |
| Quicken Loans | Up To $500000 | Home Loan – 15 & 30 Years | Home Loan – 5.116% APR for 30-year term | Home Loans, Mortgage refinancing, FHA, USDA, VA loans |
| Figure | Home Loan – Up to $150,000 | 5 to 30 years | Home Loan – 2.99% APR – includes a combined 0.75% discount for opting into a Quorum Membership (0.50%) and AutoPay (0.25%). Also includes the payment of a 4.99% origination fee in exchange for a reduced APR. | Home loans, Mortgage Refinance |
| AmeriSave Mortgage Corporation | Up To $1.5 million | Home Loan – 15 & 30 Years | Home Loan – 2.429% APR for 15-yr, 2.528% APR for 30-yr | Fixed Rate Loans, Adjustable Rate Loans, Cash Out Refinances, FHA Loans, VA Loans, USDA Loans |
| ThirdFederal | Up to $625000 | 10, 15, 30 year | 2.55%APR for 10-yr term, 2.80% APR for 15-year term, 3.15% APR for 30-yr term | Mortgage & Home equity |
Next Steps
If you’d like to speak with someone from our team about all the financing options available to you, feel free to contact us by email ([email protected]) or phone at 1-877-240-6921. Our friendly Land Specialists are more than happy to assist you in finding the perfect financing, and locking down that dream property! ????
