Posted: Tue Jan 02, 2007 6:43 am Post subject: Can I use land as collateral for a loan?
I inherited a piece of land from my parents. The land is an empty lot in a sub-division. I own the land free and clear. I would like to use the land as collateral for a loan. How can I do this and wqho can I contact?
Hello fablegerm,
Yes you are able to use the land as collateral. There are many mortgage companies/banks that can pull cash out using a lot loan, home equity line of credit (HELOC) or other specialty loans. What state is the property located in would be my first question and how much are you looking to pull out compared to the value of the land?
You can use the land as collateral if you are interested to take a mortgage loan. You need to contact lenders and shop for a suitable loan that will suit your budget. _________________ Procrastination is the enemy of your financial sucess
Posted: Wed Jan 03, 2007 4:16 am Post subject: RE: contact community lenders
Hi Fable,
You may contact any of the lenders in our Community. They provide various loan programs which require the land as collateral. Just Request for Free Consultation and provide the minimum details.
We shall forward your request to our community lenders and they shall contact you if their profile matches with your requirements.
Posted: Thu May 08, 2008 6:15 am Post subject: RE: what you need apart from deed to get loan
Well as far as I understand, the land should be free of liens. Or else lenders won't agree to provide a loan on it. You need to have proofs of your income (pay stubs for the past 2 months) and a copy of your credit report so that the lender can check them before you get pre-qualified. Tax returns for the past 2 years should be there to show that you have been a responsible tax payer.
You should have documents to prove your assets (original bank statements, listing of saving bonds etc) and source of down payment, if any.
Jessica pretty much laid it out for you Shasta. All I would ad is to visit a mortgage bank. The reason being they can typically do a loan faster that a loan officer or broker because they underwrite (e.g. they use thier own money) the loans themselves. Another quick route which I do not recommend unless you are desperate is a hard money loan. They do not check your credit at all they just varify the value of the land and typcially will lend 70% of the value.
Hope this helps and welcome this seems to be a great community! _________________ Cliff Pape
Market Analyst
www.home-buddies.com
I have seen some of your posts and it seems you are knowledgeable and have experience in this industry. Why do not you introduce yourself and let the community know about yourself at http://www.mortgagefit.com/introduce-yourself.html
Hope you will enjoy participating and helping people in this forum.
Whether you can get the loan or not depends on your credit and source of income. So if you have a good credit and income and also enough equity then you can get it with ease. By the way, have you contacted with any lender yet? You can go for no-obligation free mortgage quote from the community lenders. Hope it helps. Let me know if you have any further queries. _________________ Good is the Enemy of Great.
fablegerm
