Creative Financing
I have undeveloped land in Maryland with equity of $220,000.00. Value=$267,000.00 mort=41,000.00. I am trying to fiqure a way to get loan using the equity. No banks or mortgage comapnies I have spoken to will do equity line or line of credit on undeveloped land. Prupose is to buy other r.e. properties not to build on this land. I am leaving it undeveloped for future use. I am self employed wtih minimal income showing. Credit score approx 650. Anyone with solution respond or contact me at **Please See My Profile** Please
50% LTV is likely the tops you will see if you can actually find a lender. You will also pay more on the interest rate.
Lenders do not like land. If they have to take it back it is harder to sell, can not be easily put to productive use, etc. Hence it is not worth their time and risk capital.
You might need to get more creative.
Are you looking to buy an investment property or something similar? You might be able to create a note on the land and then trade the note for the investment property. Again, the person would likely not value the note and the property anywhere near what you think it is worth.
Holding land is expensive. If you really want to hold it for the future you will likely have to keep a lot of equity tied up.
John