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Land loans are becoming increasingly more difficult to obtain in
today's market. We can help with your land loans in general,
but our niche is Northern California land loans. Depending on
the nature of the deal, we can also help with your California land
loan needs outside of the Northern California area.
Land loans are very loan to value driven. For Northern
California land loans, we need the loan to value to be at or below
30% as determined by an appraisal. Land loans for parcels that have been purchased in the
recent past are typically going to use that purchase price as the
land value basis for computation of the loan to value.
The
exception to this rule on land loans is if you have improved the
property. If you have improved the property since the
purchase, we can typically use a new appraised value for the base on
our land loan to value calculations. If you have a tentative
approved map, or even better, a final approved map, we will have
more options on your land loan.
In
order to properly evaluate your land loan request, there are a few
items of information we will need up front. If this is a land
loan refinance, we will need to know when you purchased the land,
how much you paid, as well as the structure of the existing land
loan on the property. In addition, if you have spent any money
out of pocket improving the land, we will want a line item breakdown
of those funds.
If
this is a purchase, the land loan process is more straight-forward.
We will need to know the purchase price, how much money you have to
put down, and if the seller is willing to carry back a second behind
our land loan.
If
you are looking for a land loan to improve the property, or do the
horizontal or vertical construction, we will also need a contractors
bid for the work to be completed, with a line item breakdown of
costs. If you are able to have this information available
upfront, it will help your land loan process go much more smoothly.
We
can help with land loans in general, but prefer California land
loans, and even more specifically, Northern California land loans.
In addition to a straight forward land loan, we can also offer
construction land loans, for both the horizontal and vertical
portions of your project.
Contact me for
more information on our land loans in general, California land
loans, or Northern California land loans. Please complete our online
form to start the process, or call me directly to discuss your
land loan needs.
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