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| Which loan is right for me? |
Years
in
the house |
Recommended
Program |
| 1 - 3 |
3/1 ARM, 1year ARM or
6 month ARM |
| 3 - 5 |
5/1 ARM |
| 5 - 7 |
7/1 ARM |
| 7 - 10 |
10/1 ARM, 30 year fixed or
15 year fixed |
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Obtaining a Land Loan to Build Your Dream Home 
January 20, 2010
In most places you have to own land before you can build your own home. There are many ways to go about acquiring land, so that you can later build. One thing to know is that your interest rate depends on the price of the land. If you are buying a piece of land that is over a million dollars, your interest rate is going to be higher. Also, you should know that there are certain regulations to follow when and after you acquire your land. Many states require you to build within a certain amount of time but under certain circumstances, there are extensions available.
Being able to acquire land is very important, if you want to build your own home. There are land loans available for people that are planning to build. Contractors have different rules to follow then home owners, so you might want to look online for those regulations. The Internet is a great tool because in many cases you can apply for a loan right online. This convenience is amazing because if you are at home, you have everything that you\'ll need right at your fingertips. You don\'t have to go back and forth and you can still talk to someone if you need assistance.
In California lenders are very specific about the guidelines that you have to follow to acquire land loans. For instance, there is financing available for a very short term as long as you plan to build within that term. They also require the land to be residential and have all the necessary hook ups to live. The land has to have sewer, power and water already at the site. It also has to have a developed road. They also are very specific about what type of credit score you have to have. If you are acquiring a more expensive lot, you have to have a higher credit score.
If you want to get a land loan in order to build a home, you have to make sure that you know everything there is to know about getting the loan. Looking online could save you a lot of time and hassle. If you read the regulations before you try to apply, you may find that there is something about your lot that makes it a bad investment. Reading the requirements can also tell you if you will qualify for the loan. Getting land loans is pretty easy as long as you are informed and you follow all the rules.
residential land loans are for families planning on building a new home and need financing to buy the land first utilizing a land loan
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