Can I get a loan using land as collateral?

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Icon Mini Profile mtrue1940





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Post Posted: Sat Nov 15, 2008 9:41 am    Post subject: Can I get a loan using land as collateral?
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I have 40 acres of land in WI owned free and clear with an independent appraisal of $140,000. I wish to borrow $50,000 to pay off other debt. I am having difficulty finding someone to take the land as collateral - there are no improvements on the land.
Icon Mini Profile sara
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Post Posted: Mon Nov 17, 2008 4:28 am    Post subject:
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Hi Mtrue,

Welcome to the forums.

I guess you wish to take a land loan using the land as the collateral. You said you are finding it difficult to get a loan. But what are lenders saying regarding denial of the loan offer? there must be some reasons involved.

The appraised value of the land is good enough and comparatively you aren't borrowing much. So, there shouldn't be much of a problem in getting the land loan. Well, I shall suggest that you have a talk with the lenders in this community. You can simply go for a no-obligation free loan consultation with the lenders here. Let's hope they'll be able to help you out.

Take Care

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Icon Mini Profile gmakerley
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Post Posted: Mon Nov 17, 2008 9:43 am    Post subject:
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loans in which land is the only collateral are difficult to obtain. institutional lenders are not willing to take the risks involved in undeveloped land as collateral. you may find that there are hard-money lenders (higher rates, etc.) willing to take that risk.

if you've got a broker you deal with currently, that may assist you in finding such a lender.

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Ronald

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Post Posted: Wed May 13, 2009 5:21 pm    Post subject: property loan
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I own a home in dallas texas free and clear , can i use the the property for a loan ? im in california
Icon Mini Profile smithsussane
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Post Posted: Wed May 13, 2009 10:30 pm    Post subject:
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Hi Ronald!

Welcome to forums!

You can take a loan on your free and clear property in order to buy another property. However, you should inform your lender about the fact that you would be purchasing the property in California.

Sussane
Horace

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Post Posted: Fri Jul 24, 2009 8:57 pm    Post subject: pasture land for loans
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My wife and I are looking to have a home placed on 40 acres of pasture land that we have recently obtained. This land is lein free. This is our only collateral that we own. The land is appraised at 80,000 and we are looking on purchasing a modular house for around 150,000 which will be placed on a new basement. What are our changes of getting a first time home buyers loan? Our credit scores on around 700.
Icon Mini Profile adonis
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Post Posted: Sun Jul 26, 2009 11:07 pm    Post subject:
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Hi Horace,

You will get a first time buyers home loans only if you have not owned a property within the last 3 years. In such a case, you would be able to get the first time home buyers tax credit as well. If you are looking for a conventional loan, you would need a credit score of around 720. Moreover, your credit report should not have negative items on it. The lender will also look after your income before granting the loan.

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Post Posted: Sat Feb 13, 2010 8:52 pm    Post subject: getting a loan
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Can I get a loan using property in someone eles' name ascollateral, property is free and clear.
FredQ

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Post Posted: Sat Feb 13, 2010 9:05 pm    Post subject: using a friend home as collateral
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Can I use a friend's home as collateral for a loan the home and land are free and clear.
Icon Mini Profile Niicss
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Post Posted: Mon Feb 15, 2010 1:58 am    Post subject:
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You cannot get a loan in your name if your name is not mentioned in the property deed. The lender will issue the loan to the owner of the property and not to anyone else.
Rattler_Rick

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Post Posted: Wed Feb 17, 2010 3:19 pm    Post subject: Using land as collateral to start a farm
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My wife and I own 32 acres of land that we want to use as collateral to start a farm. Are there any lenders that would be able to assist us? She has poor credit and I have none at all. Any advice?
Icon Mini Profile Niicss
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Post Posted: Thu Feb 18, 2010 2:19 am    Post subject:
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Your query has been replied to in the given page:
http://www.mortgagefit.com/loantalk/land-badcredit.html

Please take a look at it. Hope it helps you.

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Post Posted: Wed Feb 24, 2010 12:05 pm    Post subject: Construction loan
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My daughter and son-in-law were given 20 acres of land to build a home from his mom and dad. They currently have a construction loan and ready to switch to a conventional home loan because the house has been completed. However because the in-laws have not put the land in their name yet they cannot get the loan. They were told the land needs to be in their name 6 months before they can get the loan. If the paperwork is completed and the land is in their name, do they really need to wait for 6 months?
Icon Mini Profile Niicss
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Post Posted: Thu Feb 25, 2010 3:11 am    Post subject:
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There are chances that the lenders would want your daughter and son-in-law to own the property for 6 months. However, if the paperwork is complete, then they can start applying for loan to check out whether or not they would get one.
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Post Posted: Fri Mar 12, 2010 11:05 am    Post subject: Selling grazing land
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How do I go about selling 7 acres that were appraised at 380,000 or obtaing a loan on it. I recently lost my job and I need to go back to school. What do you recommend?
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