Published on December 22, 2020
Land Loans: Meaning, Types, & Benefits : Land Loans: Meaning, Types, & Benefits An overview: : An overview: This type of loan is used for financing the purchase of a plot of land. They are used when a buyer is interested in buying a piece of land for building a home or utilizing it for business purposes. The three most common types of land loans are : Raw Land Loans: Raw Land Loans This loan is related to the undeveloped land with no electricity, roads, and sewers. They have higher interest rates and significant down payments rather than other land loans . Improved Land L oan Unlike raw land and unimproved land, this loan is related to the improved land that has access to things such as electricity, road, and water. The interest rates and down payments of these loans are lower than any other land loans . Unimproved land loans: Unimproved land loans This loan is related to the unimproved land with some utilities and amenities that lack an electric meter, natural gas meter, phone box, etc. They don’t have sky-high interest rates, but they are higher than other types of loan financing. Benefits of acquiring land loans:: Benefits of acquiring land loans: It has a shorter tenure of up to 15 years. It provides the opportunity for an individual to build the home of your dreams. It offers great chances to businessmen for capitalizing on up and coming areas. It ensures there is access to utilities and public roads . If you also want to acquire a land loan from the top certified professionals, you must visit SouthStar Bank .