Financing in 95070>Question Details

Nitin K Gupta, Home Seller in Saratoga, CA

Are there any lenders giving loan for buying raw land?

Asked by Nitin K Gupta, Saratoga, CA Wed Mar 13, 2013

Hi, I noticed there are couple of really good lots available on Bohlman Road, with Saratoga School district and views. They even have some nice new neighboring homes. I was wondering if anyone here can recommend a loan agent/lender. Some of these lots are under 500K, but I am more interested in one that's listed for 750K

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Keep in mind the general loan to value rates for land are ~50% down, as opposed to 20% down for land with a habitable home on it.
0 votes Thank Flag Link Sat Aug 24, 2013
As an experienced lender, builder, and designer and Realtor for over 40 years, living in Saratoga for over 26 years, I may be able to provide a package that will result in substantial savings.
408 867 2000
0 votes Thank Flag Link Wed Mar 13, 2013
Yes, there are many funding options for buying land. They depend on the intended term, use and present zoning and location. Rates vary by the term in years and often land loans are granted as a package with financing included for improvements. Such a loan is usually converted to a permanent fully amortized loan once the building permits for improvement are finalized.

There are many variables that need to be answered to be specific, so the answer provided is a general response to a general question.

For a more complete analysis, please contact me with specifics about the land, location, amount of money needed, selling price and amount of down payment you intend to make, number of years you want the money and whether or not you intend to build, farm, ranch, hunt or have some other purpose for buying it. Less common reasons are for preservation of a view or a desire to hold it as an asset, presumably one that will increase in value over a reasonable time. There are even water rights purposes intended and sometimes lot line adjustments to allow construction of an adjacent piece of land. As you can see, there are many reasons people buy raw land. There is usually a way to achieve the funding when using an experienced and competent loan person. Good credit is not always required, but it can always help.

Mark Evans
408 867 2000
0 votes Thank Flag Link Wed Mar 13, 2013
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