RAW LAND LOANS

Raw land financing can be the most challenging type of financing to find. Banks will not lend on raw land unless it is at a very low LTV with full documentation, and even then you can expect a fair amount of red tape to weed through. The risk on raw land financing is great. This is why it is so important for raw land buyers to deal with a mortgage company that understands the unique challenges of financing raw land especially in Florida. There are creative financing methods available for raw land that can eliminate much of the red tape. Rates may be higher than traditional banking rates but the ability to get the deal funded is often more important than spending months going through a process that may leave you disappointed.

Raw Land Highlights

• Acquire raw land with only 20% down
• Raw Land loans with no maximum loan limits
• Rate reduced for LTV's below 65%
• Stated Income available
• Hard Money No Doc Raw Land Loans
• Raw Land with any zoning allowed

raw land has many technical challenges that other property types do not. If you are not as seasoned investor it is wise to obtain as much information as possible about your raw land purchase project.

Raw land is not easily valued. There are not typically going to be many comparable sales on raw land. The process of trying to determine the true value of raw land is far more difficult than improved land would be. It is wise to consult with an appraiser well versed in valuing raw land prior to making a bid on a land deal. When looking to refinance raw land you currently own it is equally important to understand the true value of your property. An experienced appraiser is required to assist you in understanding the value of the land.

Raw land can serve many purposes. It is important to do market research on the surrounding area and uncover the highest and best use of the land you own or are looking to purchase. The highest and best use of the raw land will also tie into the true value of the land as well. Often the use of the land is tied to the zoning requirements imposed on it. It is not an easy process to get the zoning of raw land changed. Common raw land zoning include

• A1 - Agricultural with single family home
• C - Commercial business
• CO - Commercial office
• FP - Flood plain
• M - Industrial
• R1 - Residential single family
• R1H - Residential hillside
• R2 - Residential multifamily
• RT - Recreational tourist/ Residential transitional

MORTGAGE PROGRAMS