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Land loan rates
for our land loans can vary greatly, depending on a wide variety of
factors.
The two main
factors in our land loan rates are the loan to value and the
location of the property.
The lower the
loan to value, the better we will be able to do on the rate.
Additionally, the more desirable the location of the land, the
better we will be able to do.
These days the
strength of the borrower, both financial strength and credit
worthiness, also plays a part in the rate and terms we are able to
offer.
Due to the
market conditions, land loan rates will typically be higher than
rates on other property types.
As a general
guideline, our land loan rates for private money will range from
12-16%.
These loans are
typically written for one to three years, and may require some
prepayment penalty or guarantee of interest. Typically, we
need to guarantee 6-12 months of interest on our land loans these
days.
Our loan to
value guideline for land loans in today's market is 30%. There
are some situations in the San Francisco Bay Area where we can help
with a loan at a slightly higher loan to value. There are also
situations throughout the state, and depending on the location of
the land, where our loan to value will be less than 30%.
Contact me for
more information on our land loan rates, or for additional
information on land loans in general. Please complete our online
form to start the process, or call me directly to discuss your
land loan needs.
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