Owner Financing Might Be Good Option For Buying Vacant Lot

thinkglink

A: Residential mortgage lenders will generally not lend on vacant land. You’d have to go to a commercial lender and they won’t generally do it because you won’t have any income coming in on the property. Also, the amount you want to borrow is very small for a commercial loan.

I have two suggestions for you. First, see if the owner of the lot might finance the purchase for you. If the owner doesn’t have a loan on the property, and you’re willing to pay a slightly higher interest rate in order to secure the financing, an owner-financed deal might work well all around.

The other suggestion is to see if you can borrow against your primary residence and then use the cash to buy the lot. The problem here is not many lenders are doing home equity lines of credit (HELOCs) these days. These loans have been trashed in the housing crisis and lenders have taken a bit hit.

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Owner financing land is a great way to go!

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