If you are planning to construct your own house and are looking to purchase a vacant plot, you’ll need to apply for a land loan. With a Vacant Land Loan, you can purchase a land for building your dream home, and then take your time designing your new home and choosing a contractor that is right for you. Vacant land loans are also known by many other names, such as land purchase loans, raw land loans, residential lot loans, land mortgage loans, land lot loans etc. No matter the name, these loans are used to finance the purchase of land in order to build a home.
A vacant land loan is similar to a construction loan, but the main difference is that construction loans place a time limit on when you must complete the building project on your property. This limit is usually set at between 1 to 3 years. On the other hand with a vacant land loan, there are no time pressures attached in terms of when you need to start or finish construction.
Here are the top 10 benefits of getting a vacant land loan:
1. Purchase Land: Regular home loans don’t usually allow you to purchase land without a home on it but a vacant land loan allow you to do it.
2. Build When You Are Ready: With a construction loan, you are typically required to build your home within one to three years, vacant land loans have no such requirement. You can purchase the land now and make the decision to build later.
3. Refinance Options: You ca n also use one of these loans to refinance an existing vacant land home loan.
4. Redraw Facility: The redraw facility will allow you to access any additional loan payments you have made. However, any principal reductions made during any fixed rate period will not be available to be redrawn.
5. No Penalties For Extra Repayments: You can make additional repayments at any time or pay the loan off early without incurring a fee. There are no penalties for extra repayments and your choice of repayments.
6. Repayment Schedule: You can choose a repayment schedule (weekly, fortnightly or monthly) to suit your budget.
7. Payment Options: You can choose from a variety of fixed, adjustable, and variable rate loans with flexible terms up to 30 years.
8. Loan Split Options: You may also opt for a split loan, which will afford you the security of a fixed rate home loan, and the benefits of a variable loan.
9. Lower Interest Rates: As compared to personal loans, the interest rates on these are very low. The loan term also continues till ten years. During this period, the borrower can make income from the land, and repay his loan easily.
10. Flexibility: This gives you flexibility that no other type of loan does. Once you get the loan, you can use it for any purpose other than purchasing that land.
The Bottom Line:
If you are considering a loan to purchase a lot, a loan to buy vacant land or a construction loan for building your new home on a lot of your choosing, contact Magna Capital Group, Inc today.
We offer competitive and flexible programs to finance residential and commercial Lands. We specialize in easy and convenient financing for vacant land loans for home sites of all sizes. We can assist with vacant land loans across California. To find out more details regarding our programs, Call (310) 734 4044 or Email at email@example.com.