Where can I get a great rate for a land/lot loan in Virginia?

If you plan to purchase raw land and obtain a land loan for a land lender, 20% down might not be adequate.

Normally no matter your credit score or credit habits, in order to secure a land loan, you are required to have a down payment of at least 50%.

Since this is a risky loan, the great rate you are seeking might be around 3-5% higher than an advertised home loan or greater. You might expect your interest rate on a land loan to be somewhere around 8 to 10%

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If you plan to build on the land in the future, the mortgage lender you use might require the land loan to be paid off.

In some instances the mortgage lender you select to finance the building of your house might require the lender of the land loan to take a second position, so the mortgage lender that is lending you the funds to build your house would be able to be in the first position.

This is common and is no surprise to anyone. Land lenders know and understand this procedure. Your mortgage lender would send your land lender a subordinate agreement for them to sign.

You might want to get this in your contract that the land lender would be willing to take a second position when you apply for and be approved for your land loan. Normally this would not be a problem,as the land would be improved and the land lender would have more of an asset to foreclose on in the event you do not pay the monthly land loan payment for some reason.

Normally a land lender would not want to have a 30 year term for you to pay off your land loan. It is normal for a land lender to have terms of around 10 years. There might be a roll over clause where you would be allowed another 10 years.

You might want to contact and apply for and be approved for a land loan. Your loan officer would explain the requirement and procedures necessary to be approved for your land loan.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"

maybe from the owner of the land