A Hamilton Land Loan for acquisition of bare land or for performing property improvements can be secured from both bank and private mortgage lenders. There can be very variations to this type of lending starting with the condition of the real estate and its location.
As a general rule, the more undeveloped and remote the property, the more likely that 1) there will not be a lot of land loan options available; and 2) any land financing that can be arranged will likely not exceed 50% of the current fair market value of the property. If a subject property is closer to, adjacent, or in the middle of an existing development, there is not only a higher likelihood of greater lender interest but also the potential for a higher lending value to be secured.
With developed property that is located in an active resale market for similar real estate, the lending value can reach upwards of 75% of the market value. This can hold for both bank and private mortgage lending options. Bank financing for bare land is going to be more accessible with higher net worth individuals with well established cash flow. That being said, institutional loans can be made on development properties where the cash flow for debt service will predominately come from the sale of developed lots. The more complete the process from entry to exit for the lender, the more likely that bank or institutional sources will be interested in a land loan or land development mortgage financing option.
For a Hamilton land loan from a private mortgage source, end of term exit strategy to repay the mortgage will be the most important aspect of the deal for the private lender after evaluation of the land for security purposes. Private mortgages are going to come at a higher cost of borrowing than a bank land mortgage, but in most cases they can also be put into place faster, providing funding in a more timely fashion which may be crucial for meeting a tight deadline.
If you require a Hamilton land loan or land development mortgage, I suggest that you give me a call so I can quickly go over your scenario and provide relevant land loan financing options for your immediate consideration.