Financing in Chicago>Question Details

Dan, Both Buyer and Seller in

is there lender that will fund a vacant lot in city of chicago ( that has no existing mortgage)?

Asked by Dan, Tue Aug 14, 2007

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4
Yes, but a lender will look for you to maintain a high level of equity in the property.
0 votes Thank Flag Link Mon Aug 27, 2007
Deborah Madey, Real Estate Pro in Red Bank, NJ
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Dan,
You shouldn't have a problem finding a lender that will lend on vacant land. So long as the land value appraises based on location and recent activity in the area, you'll likely get a loan subject to lender guidelines and your ability to repay. You'll likely have to jump through more hoops but that's normal.
Web Reference: http://www.KDRchicago.com
0 votes Thank Flag Link Mon Aug 27, 2007
There are types of loans designed specifically for vacant lots: Land loans and lot loans that have special financing.

You don't say if it's a commercial lot of residential lot...... so those details will shape the answers your receive.

For example, if you are looking to build residential eventually, certain land loans are designed as purchase money land loans for those borrowers who aren’t ready to begin construction right away, but will be ready in the near future. In this case, the land or lot must be normal for the area and at least one utility must be available from the street.
0 votes Thank Flag Link Wed Aug 15, 2007
Patti Pereyra, Real Estate Pro in Chicago, IL
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My experience tells me vacant land in any city if extremely hard to finance. Usually it is a seller carry with a subordination agreement from the seller.

Are you asking about a take out loan to build or a purchase.
0 votes Thank Flag Link Tue Aug 14, 2007
Pam Winterba…, Real Estate Pro in San Ramon, CA
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