Lot Loan & Property Loan

Have you found that perfect lot to build your dream home on?  If you’ve found the perfect location and want to build, a lot or property loan will likely suit your needs for temporary home loan financing.  Lot or property loans are similar in some respects, specifically their short term nature, to construction loans.  Most mortgage lenders who offer lot or property loans also offer construction loans.

Lot or property loan financing is used for the purchase or refinance of a residential lot where you will construct an owner-occupied primary or secondary residence (some lenders offer investment property loans).  A lot or property loan disburses in a lump sum, and can be fixed rate in nature such as a 5 year balloon loan, or be interest only for shorter periods of time (typically 1 to  2 years).

On maturity of the loan term many lenders will offer a permanent financing option.