Banks that offer loans on land?

Question

Reaching out to see if anyone can recommend a bank in Asheville, NC, that offers a loan when buying land? Any suggestions appreciated!

Mitch Davidson · Answer

Hi @Brooke Morton. United Federal Credit Union is the best option in my opinion. I refer business to Jason Chambers over there quite often. Movement Bank, a sister company to the one I work for (Movement Mortgage) is great as well. And as a third option, AgFirst Farm Credit is an option. I'll message you some contact info for these. And we'd love to have you visit one of our local BP meetups sometime soon.

Robert Ellis · Answer

I wouldn't buy land with a loan. as someone who works with land every single day it should be considered an equity contribution. if you are putting a loan on land you are buying unimproved land and just adding a mortgage. you are going to make it more difficult at later stages to recapitalize. I would recommend doing the opposite. look for land on a per acre basis and focus on how could you make it more valuable. we purchased a piece of land for 60k and just got the appraisal back for 900k based on what we got entitled there for a hotel development in columbus ohio. keep the focus on adding value. forget the loan

Simmy Ahluwalia · Answer

@Brooke Morton - they do, but they want to understand your end goal. Typically, banks will lend at 50% LTV on raw land.

Chris Seveney · Answer

Typically a local bank may lend. I also know some private lenders that lend on land with lower LTV's - of course more expensive than a bank but it can be done.

Brooke Morton · Answer

@Simmy Ahluwalia @Jaycee Greene Ah, good to know. It's residential use only (no farming) and I will be building a SFH. And, I've already identified the parcel.

Brooke Morton · Answer

This all sounds great! And I'd love to attend the local meet-ups. Thank you!

Mitch Davidson · Answer

Sounds good. Sent you a message.

Jaycee Greene · Answer

Hey @Brooke Morton The answer to your question is going to depend on your planned use for the land. Have you identified a specific parcel (or parcels)?

Banks that offer loans on land?

Banks that offer loans on land?

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