A Burlington land loan can be potentially be arranged on any real estate property where there is no building currently on the property. A bare land loan is either going to be required for a piece of property that has never been developed, or one where the use was or is agricultural where no development other than scheduled property management is required. Land loans for developed or semi developed properties can also be secured with the prospect that more financing can be acquired for these properties if the development work can increased the value compared to the bare land equivalent.
Land loans that are acquired for a use other than development of the property will typically fall in the 50% to fair value range for the potential amount of the land mortgage financing on purely bare land and higher ratios as you get into more developed real estate.
When the use of funds from land financing is to actually develop the property, then any increase in property value from the work invested can result in more funds that can be borrowed.
One of the key requirements for Burlington land mortgages is that there are no environmental issues on the property so the past use of the property will be important in determining if there may be any future concerns. When considering placing a mortgage on bare land, especially properties that have had an agricultural use, the environmental risk tends to be very low and not typically an issue. But when you get into situations where buildings have been removed from a property leaving a bare lot, the prior use of the building can have a considerable impact on any potential land financing opportunity.
Burlington land loans can be both from bank and private lending sources. Banks and institutional lenders are cash flow lenders, so even though the security value of the property may be significant, cash flow for repayment is going to be required for the lower cost sources of real estate property mortgage financing.
Private mortgages are going to be higher cost, but also more focused on property value and less on cash flow.
If you need a Burlington land loan, I suggest that you give me a call so I can assess your requirements and provide land mortgage financing options for your review.