If you’re looking for house lot financing for a lot that you’re wanting to acquire or for a lot you already own, the location of the lot is going to be very important with both institutional and private mortgage lenders.

In a very active market area, its not that difficult to get financing for vacant lot of 50% loan to value from a bank or institutional lender, provided that the real estate is in a major market with regular sales occurring for similar lots.

As you move away from major centers, banks and institutional lenders will be less interested in the deal in general, even at higher rates and lower loan to value ratios.

Private lenders will also finance house lots, provided that they know the local market and are again comfortable that there is a good resale market present for the specific type of lot you’re trying to finance.

If there isn’t a strong resale market in place for house lots in your area, then the next important element that needs to be present is a well defined plan for either future repayment of the loan at the end of the term or a plan for future development that will increase the value of the property.

Any lender that is providing house lot financing is going to be in first mortgage position. So if you improve the lot by either adding servicing, landscaping, or building construction, then the value of the underlying security is going to increase, providing a higher loan to value for the first mortgage lender and increasing the potential market interest in the property as a developed or semi developed lot.

Another option would be to have a recourse agreement for a mortgage lender whereby a third party agrees to purchase the property from you at a set price and pay the proceeds directly to the lender in the event of mortgage payment default. This can provide the additional security the lender may need to finance the house lot in the event that the market is not viewed to be strong enough otherwise to support a mortgage financing decision.

If you require house lot financing, please give me a call and I’ll quickly go over your requirements and provide house lot financing options that meet your needs.

Click Here To Speak With Toronto Mortgage Broker Joe Walsh For A Free Assessment Of Your House Lot Financing Options

The post House Lot Financing first appeared on Ontario Construction Loans And Mortgage Financing.

A Land Loan tends to be one of the first types of building construction loans that can be required for a development or construction project.

This can be a bare land loan or land loans for semi developed properties that perhaps already have services and road access in place. If these services still need to be put in place, a separate site development loan may also need to be acquired for the project

Because the loan is real estate based and will be secured by a land mortgage, there are more likely to be options available for financing.

Like most anything else associated with land, the key to securing land financing is all about location.

A property that is located within a developed or semi developed area is going to be more appealing to a mortgage lender than one in the middle of nowhere with nothing going on around it.

There can be quite a range in terms of what amount of financing you can get on any given property, but in most cases, the lender’s interest will fall between 40% and 60% of the fair market value.

One of the potential benefits of trying to acquire a land loan is that your may have a full complement of mortgage lending choices right from bank and institutional lenders to private mortgage lenders.

Banks are going to be more focused on the cash flow generated by the applicant and their credit standing while private lenders are going to focus more on the fair value of the property and how difficult it may be to market in the event of a loan default.

Even if you can qualify for a bank land loan, you may still opt for a private mortgage as the requirements for financing and the length of time required to complete the application process can be substantially less than through a conventional lender. This can be a big issue when you’ve got an accepted offer to purchase, subject to financing and time is running out on the financing condition.

Higher loan to values are potentially possible, provide the property is pretty much at the construction stage or is in a highly active construction area.

In order to best determine what land loan options are available to you for any given piece of property, I recommend that you work with an experienced mortgage broker who has access to both private and bank land financing sources as well as a track record of successful placement.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Land Loan first appeared on Ontario Construction Loans And Mortgage Financing.

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.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Milton Land Loan first appeared on Ontario Construction Loans And Mortgage Financing.

“Richmond Hill Land Financing For Semi Developed and Bare Land Properties”

Richmond Hill land financing for residential, commercial, or industrial real estate lots, can be arranged through both bank and private lending sources.

To get a bank loan for bare land or semi developed land financing, the loan to value to going to be around 50% and the cheaper bank rates are going to require the applicant to have good credit and a documented form or forms of cash flow to service the debt. In cases of land that is going to be developed right away, a bank will arrange to have a larger percentage of potential lot sales be put towards the outstanding principal on the loan in order to pay it down without reducing the loan to value securing the remainder of the loan. This proceed amount on sale can be anywhere from 75% to 100% of the proceeds.

With bare land that is not net being developed, a bank or institutional lender will likely lend in the area of 40% to 60% loan to value, depending on the specific property and where its located. The key to getting bank financing is going to be linked to the cash flow and personal guarantee the borrower can provide as without both of these elements, its unlikely that an institutional land loan will be secured.

Private mortgage lending is also an alternative for Richmond Hill Land financing requirements. The basic differences between a private lender and a bank is that the private lending source is going to be more focused on the market value of the property and the equity it contains as well as the exit strategy with less focus on credit profile or ongoing cash flow to service debt.

Most private lenders that provide land loans are located in the same market area and have a strong sense of what the market value and resale ability of the property is, allowing them to make a decision much faster than an institutional or bank lender. If the loan goes into default for a private lender, they may be prepared to purchase or acquire the land themselves in order to settle the outstanding principal balance owing.

If you need a Richmond Hill land loan, I suggest that you give me a call so I can quickly assess your situation and provide land financing options for your immediate consideration.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Richmond Hill Land Financing first appeared on Ontario Construction Loans And Mortgage Financing.

“We Provide Aurora Land Loans and Land Mortgage Financing Facilities”

An Aurora land loan or bare land mortgage can be acquired through our network of institutional lenders and private lenders.

With bare land, the keys to the available financing amount that you can expect to secure include location, current use, expected future use, zoning, and so on. The more removed a piece of property is from future development in terms of time and location, the less loan to value. For instance, a bare piece of property in the middle of no where will likely not provide a mortgage amount greater than 50% of the property value. This relates to a likely slow resell time period in the event of default and foreclosure. Properties that are in a more active market area and/or will soon be developed to increase value will provide a higher lending value as a percentage of market value to the lender’s view that resale will be faster if required, and overall risk of loss will be lower.

For bank or institutional lenders to consider providing an aurora land loan, you will also be able to show a strong ability to debt service from existing cash flow. The cash flow available to the borrower can come from an unrelated source.

Private lenders are going to be less concerned on the historical proof of cash flow for debt service, although debt servicing is likely going to be required on a monthly basis.

The majority of Aurora bare land loans or land mortgages are provide by private lenders that have a good working knowledge of the local market and can take a hands on approach to loan and security assessment. Private lenders do have a higher cost of funds, but they tend to be interest only monthly payments with terms of one year in most cases. Private lenders can be excellent sources of short term financing, especially when you’re in a hurry and need to get something in place in a relatively short period of time.

Bank or institutional land loans will take longer to arrange so if you believe you can meet their requirements and want to take advantage of a lower cost of funds, then make sure you allow yourself plenty of time to go through the application and approval process.

If you require an Aurora land loan at this time, please give me a call so I can quickly assess your situation and provide relevant options for your immediate consideration.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Aurora Land Loan first appeared on Ontario Construction Loans And Mortgage Financing.

“Burlington Land Loans For Developed Lots Or Bare Land Properties”

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.

Click Here To Speak With Toronto Mortgage Broker Joe Walsh

The post Burlington Land Loan first appeared on Ontario Construction Loans And Mortgage Financing.

“We Provide Markham Home Builder Loans For Property Owners, Builders, and Developers”

A Markham home builder loan for a single family dwelling or for a number of units can be supplied by one our bank, institutional, or private mortgage lending sources.

For self build construction projects, institutional home builder loans typically require that there is no pre-existing mortgage on the property as its very difficult to get the numbers to work on a second mortgage position. Bank or institutional lenders will also require that the borrower or builder qualify for a long term take out mortgage before commencement of construction. Basically, the borrower needs to qualify for the builder loan and long term mortgage at the same time as institutional lenders will not provide single family construction loans unless they can gain access to the more profitable long term residential property mortgage. The other key consideration when dealing with single family self build loans is management of the draw schedule. Typically the first draw is the hardest to get in place and its not uncommon for there to be draw cut backs and/or delays during the project due to the very specific administration institutional lenders are required to follow.

As a result, there are a lot of self build construction projects that are funded by private mortgage lenders which tend to provide approvals faster, not require the take out mortgage to be approved in advance, and have more predictable draw processes on average.

For builders and developers, home builder loans are focused on the value of the property before and after construction as well as the pre sales for the units being built. If homes are being constructed for inventory for speculative sale in the future, the amount of financing that can be secured against the property will be lower than in a pre sale situation due to the higher risk to the lender.

Both institutional and private lending sources will require presales for most builder or developer loans related to residential home construction. Consistent with cheaper forms of money, the banks will have higher thresholds to meet than a private lender on average, making this type of financing more difficult to acquire at times.

If you need a Markham home builder loan, I suggest that you give me a call so I can quickly assess your requirements and provide you with home builder loan options for your immediate consideration.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Markham Home Builder Loan first appeared on Ontario Construction Loans And Mortgage Financing.

“Guelph Land Loan and Land Mortgage Financing Options”

A Guelph land loan can be for bare land, partially developed, or fully developed property. For many construction projects, the land loan is the first type of financing required to acquire the location where construction will take place. The actual construction or building loan in many cases is a second mortgage charge against the property, directly behind the land loan.

When bare land is already owned, a land loan can be required to further develop the property to a state where building construction can take place or to a condition where the property is more marketable for resale.

While land financing is typically for a use of funds related to the property itself, it can also be for a totally unrelated application as well. Because real estate financing is the most stable form of secured financing for most lenders, a Guelph land loan or land mortgage can be used to access the equity in a property for a wide variety of bridge financing applications.

When the use of funds is not related to the property itself, the source of financing is likely going to come from a private lending source. A private lender is going to be more focused on the market value of the property, its resale ability, and the projected exit strategy that the borrower has for repaying the loan at the end of the land mortgage term which typically will be for one year for a private mortgage.

A bare land loan will typically be issued for 50% of the fair market value of the property. If the land is immediately adjacent to an active development or there are imminent plans in place for the development of the property itself, the amount of financing can be higher as the likelihood of increased market value and/or increased market demand reduce the risk of loss to the lender.

If the application of funds from a land loan directly increases the value of the underlying property, then the amount of funding available from lending sources may vary well increase to reflect the market increase from the work being proposed.

If you require a Guelph land loan, I suggest that you give me a call so I can quickly review your requirements and provide you with land financing options that will meet your needs.

Click Here To Speak To Construction Mortgage Broker Joe Walsh

The post Guelph Land Loan first appeared on Ontario Construction Loans And Mortgage Financing.

“We Help Our Clients Secure Concord Land Financing For Both Developed Land and Bare Land Real Estate”

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.

Click Here To Speak With Construction Mortgage Broker Joe Walsh

The post Concord Land Financing first appeared on Ontario Construction Loans And Mortgage Financing.

“Newmarket Land Loan Financing Options Are Available for Developed And Bare Land Properties”

Newmarket land loans can be acquired for properties ranging from totally bare land that has never been developed to properties that require further development prior to building construction.

Because real estate financing is preferred over all other types of debt financing, both banks and private mortgage lenders are interested in providing land loans in Newmarket and the surrounding area.

The basis for a land loan starts with the property location, present use, and current market value. At the low end of the spectrum, bare land in a fairly remote location is going to provide a loan or mortgage no greater than 50% of the current fair market value of the property. A bare land loan can be used to develop the property or for a completely unrelated use. If the acquired funds are invested in further development of the property, any gain in fair market value from the planned work can result in a higher initial land mortgage being granted to the borrower.

For semi developed properties or developed real estate, the loan to property value that can be extended by a lender can reach as high as 85%. Higher lending ratios are going to require 1) a strong and active resale market; 2) proof of historical cash flow for debt service, and 3) a solid exit strategy for repayment of the loan principal over time.

Bank or institutional land financing programs are going to be very focused on all three of these components while private mortgage lenders will be most concerned with the current fair value of the property and the exit strategy for repayment.

Newmarket land financing will be easier to acquire and at lower rates if the real estate is located adjacent to an ongoing area of development. This will increase the likelihood that the property will not only appreciate in value over time, but will be able to be sold in a fairly predictable time frame for a fairly predictable price. When funds are required in a hurry, a private mortgage option is likely going to be preferred over a conventional mortgage program.

if you need Newmarket land financing for land acquisition or property development, I suggest that you give me a call so I can quickly assess your requirements and provide land loan and land mortgage financing options for your immediate consideration.

Click Here To Speak With Mortgage Broker Joe Walsh

The post Newmarket Land Financing first appeared on Ontario Construction Loans And Mortgage Financing.