Milton land loan financing can be arranged for most types of real estate properties where there is no permanent structures erected. The only real difference between a land loan and a commercial property mortgage per say is that a commercial mortgage has buildings attached to the land. And while there is a broader spectrum of commercial mortgage providers, the number of lenders and lending programs for just land financing is much smaller. This is largely due to the fact that bare land or partially developed land may have a very slow resale market, especially in less developed areas. As a result, mortgage lenders, on average, are less interested in land loans.
The good news is that there are both bank and private mortgage options for bare land loans and developed land loans.
The keys to qualifying for this type of financing is going to be a clean environmental assessment, a recently completed appraisal by an accredited appraiser in most cases, and the ability to service the debt and retire the loan in the future.
With respect to environmental issues, there still can be land loan financing options, but they are going to come from private lenders only and the rates and fees related to these type of land mortgages will likely be considerably higher than properties with a clean environmental report.
For bare land loans, 50% loan to value is very common among land lenders. If the property in question is immediately adjacent to a development or is in the process of being developed, the loan to value could increase to as high as 75%.
Banks and institutional lenders will be more focused on the credit profile and personal net worth of the borrower and/or business, while private mortgage lenders will be more focused on the exit strategy to repay the Milton land loan as private lenders mostly provide one year interest terms only.
In many cases, private lenders are utilized to either get a deal closed and then provide time for a lower cost land financing option to be arranged via a longer term bank mortgage or a take out mortgage after the development and construction are completed.
If you need a Milton land loan for bare land or semi developed property, I recommend that you give me a call so I can quickly assess your situation and provide land loan financing options for your immediate consideration.