Criteria for Getting Affordable Purchase Loans in Colorado and Arizona for Buying Land Only

If you’re interested in buying a plot of land and utilizing it for building a house as per your specific needs, or else using it for business purposes, there are loans available to finance your dreams. Yes, here in Colorado and Arizona, there are specialist mortgage brokers that can help arrange such ‘lot loans’, which is a bit more complicated process than conventional home loans. As a borrower, you need to understand the nitty-gritties involved in it. Let’s straightaway dive into this topic.

 

First and foremost, the key technicalities of one such land loan is that there is NO home or property that acts as a collateral. You definitely need to make some down payment for this type of loan, where there is no security or collateral involved. Here, an expert mortgage brokerage consultant like “Affordable Interest Mortgage” can be of great help, if you’re residing in these 2 above-mentioned states. As qualifying for one such loan is difficult due to the risk factor, a borrower must have a credit score of 700 and above to qualify.

 

Different Types and the ‘Tricky’ Processes of Land Loans in the US

 

Well, the different types of loans for buying land only in the US are Raw Land Loan, Unimproved Land Loan and Improved Land Loan. There are various challenges involved, where raw land plots are not properly demarcated or defined. So, a buyer needs to double-check aspects like zoning, land restrictions and accessibility to roads and other public utilities. Here an expert can help. And, when it comes to obtaining loans for purchasing land, one must fit the eligibility criteria, as laid down by the government.

 

A borrower, before applying for a land loan must ensure that his/her credit score is approximately 700-720, and is able to provide a proper explanation for the intended use of the land. And, after the borrower is approved by the lender, then comes the decision on down payment amount and monthly interest rates. Therefore, it makes sense to partner with a certified mortgage broker that can help streamline the loan process, make the documentation process paperless and find a lender that offers ‘lot loans’ on highly flexible terms. This is how it works.