Applying for Loan using raw land as collateral

Guest 0.10 Dollars($)

My Wife and I own 33 acres of raw, rural,agriculture land. We have about $45,000 in revolving debt that we would like to consolidate into one payment and use the land as collateral. We have checked with several banks and none are willing to do anything. Does anyone know of a good lending institution that would accept land for a personal loan?

adonis · Posted: Thu Apr 19, 2007 11:21 pm Post subject:

Welcome Matt,

Usually personal loans are not secured by real estate. You may find a few creditors allowing it.

Most personal loans are offered without any security. However, there are some creditors who ask for security being offered by personal property.

If at all, you are interested in taking a loan with the land as collateral, you may go for a debtconsolidation loan which is secured by real estate. But do remember that this type of loan involves your home and the repayment period is quite long. Therefore you need to pay a lot of interest, thought the interest is spread over the entire loan term.

Guest 0.10 Dollars($)

If you are looking for some personal loan, why do you want to keep your land as collateral. Personal loans are available without any kind of collateral.

kenstampe · Posted: Fri Apr 20, 2007 1:00 pm Post subject:

Ryan, I believe the original poster was mis-stating the terminology. They would like to see if they can get a loan where raw land is used as collateral. It would not be a "personal" or unsecured loan if they did that.

What Ryan is trying to point out is that a personal loan is something perhaps you should also consider. I don't know of any loan program allowing for cash out against raw land.

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