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A refinance land
loan in today's market can be a bit more difficult to secure than a
similar purchase transaction. When dealing with a refinance
land loan, we can help obtain funding for up to 30% of the value of
the property, potentially slightly more if the property is located
in the San Francisco Bay Area.
The difficulty
in a refinance land loan these days typically stems from the
valuation of the property. If the property has been purchased
in the past 5-10 years, we will likely use the purchase price or
current valuation, whichever is less, to determine our maximum loan
amount. 30% of this number would be our maximum loan amount in
a best case scenario.
This holds true
for most scenarios. The exception would be if the land has
been substantially improved since purchase. We will need to
document the improvements, plus the cost of the improvements, in
this situation.
Typically our
land refinance loans range from a duration of 12 to 36
months, with longer terms being available in some circumstances.
We prefer
Northern California land transactions, and specialize in the San
Francisco Bay Area. We can help with a refinance of your land
outside of this area, but the loan to value we are able to offer may
suffer slightly, depending on the transaction and location of the
property.
Contact me for
more information on our land loans in general. Usually, a
short conversation enables us to evaluate your transaction and
whether or not we are able to help put together a land purchase loan
for you.
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