Concord land financing for bare land is mostly arranged through private lenders although significant amounts of bare land are financed through institutional lenders as well. The big differences between bank and private mortgage lending for bare or developed land is the time it takes to complete the transaction and the larger focus on debt servicing that you will see from conventional lenders in both cases.
For a Concord bare land loan, the loan to value in most cases does not exceed 50% of the appraised value of the property. This can potentially be higher provided that the bare land is on the verge of being developed or is located immediately adjacent to a developing area where the resale market for similar property is known to be strong.
With developed land, the same type of logic holds true in term of the amount of financing you can secure starting at 50% loan to value and increasing to as high as 85% for developments that are in a strong resale market or close to the next step in the construction process.
Land financing where the use is for development purposes of the underlying security can further get the loan amount increased provided that the funds invested increase the value of the property for the amount of the investment or more.
Land loans can be utilized for just about any purpose and are great sources of bridge financing where funds need to be acquired in a very short period of time. Because the assessment process can be completed quickly, its not unheard of to get a land loan in place from a private mortgage lender in less than one week in some cases. The speed of closing process also comes into play when looking to acquire a piece of property in a very short period. Once again, a land financing mortgage through a private lender is likely going to be the best option.
In order to determine what land financing options are going to work for a given scenario, you should consider working with a mortgage broker who has access to both bank and private mortgage sources for Concord land loans and land mortgages.
If you need a Concord land mortgage, please give me a call so I can quickly assess your requirements and provide land financing options for your immediate consideration.