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Can I get a loan using land as collateral?

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.

sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I own a home in dallas texas free and clear , can i use the the property for a loan ? im in california

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Can I get a loan using property in someone eles' name ascollateral, property is free and clear.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Can I use a friend's home as collateral for a loan the home and land are free and clear.

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Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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?

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Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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?

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Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

You won't be able to qualify for a loan as you are unemployed right now. You can definitely sell off the property. You will have to list the property in the market and check out if you can get buyers for the property. You can list the property at the appraised value or you can lower the value and list it in the market.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Looking for quick cash buyer. Value of land is $160,000. Will sell for cash at $110,000. Call 407-209-8507.

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Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Check out the given page in regards to your query:
http://www.mortgagefit.com/postdeal/about36397.html#156281

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My husband and I are trying to get a home loan for in town. We have about $500,000 worth of crop land in contract-for-deed. It is in our possession. We cannot get a home loan the normal way since we showed a loss on our last income tax report. The home loan would have to be in only my name and I don't make quite enough. Our credit scores are very poor, but on the way up.
My question is... is there any way we could take out an ag loan using our crop land as collateral for a $209,000 house? Or is this impossible?

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

Your query has been replied to in the given page:
http://www.mortgagefit.com/loantalk/deedcontract-poorscore.html

Take a look at it. Hope it helps you.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I want to let my cousin use my land for collateral to get a loan, her name
is not on the deed, is their any way that I can let her use the land ?

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Beverly!

Welcome to forums!

Unless you add your name to the property deed, your cousin won't be able to use the land as a collateral to get a mortgage.

Feel free to ask if you've further queries.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I own a house and land (paied for) Would like to borrow 25000. The home is worth 80,000. My credit score is only 645. you think i could get the loan

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Guest,

You can apply for a FHA loan. With the credit score that you have, there are chances that you'll be able to qualify for a FHA loan.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i have 2 acres that already had a mobile home on the land. I do not owe anything and do not have any leins on the property. I added on to the mobile home and made it very nice. I have been doing this with my own money over past few years. I want to borrow money to finsh, however i am having a problem the banks said it they can't do it because it is to hard beacuse i did the previous remodeling with my own money. Help?

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi candy!

Welcome to forums!

You may contact the lenders who offer personal loans and check out if they can help you with a loan which will help you in finishing the required home improvements.

Feel free to ask if you've further queries.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

trying to get loan using deed as collaral

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome cynthia,

Yes, you will be able to get a loan using the property as collateral. The lien will be placed on the property.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I want to borrow 25,000 for debt consolidation. i own my single wide and 2 acres of land free and clear

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi cindy,

If you have the required credit score and meet all the other financial criteria of the lender, then you will be able to get the loan.

Thanks

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