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
Deborah Madey, Agent, Brick, NJ
Mon Aug 27, 2007
Yes, but a lender will look for you to maintain a high level of equity in the property.
0 votes
Ken Dooley, Agent, Chicago, IL
Mon Aug 27, 2007
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
Patti Pereyra, , Chicago, IL
Wed Aug 15, 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
Pam Winterba…, Agent, Danville, VA
Tue Aug 14, 2007
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.
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