The Challenge with Traditional Bank Financing

Limited Interest from Large Banks

Many large banks are often reluctant or outright refuse to finance land purchases. This is primarily due to the increased risks associated with land loans compared to developed property loans. Raw land is seen as a less secure investment since it typically generates no income and can be more challenging to sell from the lenders perspective.

High Down Payments and Interest Rates

Those banks that do offer land loans require significantly higher down payments, often upwards of 30% to 50% of the land’s purchase price, compared to the 20% or less for home mortgages. Additionally, the interest rates on these loans are usually higher to offset the lender’s risk.

Shorter Loan Terms and Rigorous Credit Checks

Land loans from banks typically have shorter repayment terms, with higher monthly payment rates. Applicants also must undergo rigorous credit and financial checks, often more stringent than for residential mortgages which can drastically impact their chances of receiving the loan and the cost.

Balloon Payments and Default Risks

Some bank land loans might include a balloon payment structure, leading to a large lump-sum payment at the end of the loan term. In the event of a default, the foreclosure process can be complicated and lengthy due to the nature of the land. MyBestLandDeals.com offers a better path.

MyBestLandDeals.com: An Accessible Alternative

Recognizing the difficulties presented by traditional bank financing, MyBestLandDeals.com offers a more accessible and user-friendly alternative.

Lower Rates and Down Payments

As a privately funded investment company, we provide financing options with as little as 10% down on some of our properties. Our interest rates are more favorable, making it easier for individuals to embark on land ownership.

No Balloon Interest Fees

We support our clients throughout their purchase journey, which means we never charge balloon interest fees for early loan completion. This policy makes the financial aspect of land ownership more manageable and less burdensome.

Accessibility for Everyone

Our goal is to make land ownership a reality for a broader range of budgets and financial situations. We offer more favorable financing terms, opening the door to land ownership for many who would otherwise find it inaccessible.

Conclusion

Purchasing land doesn’t have to be an unattainable dream laden with high costs and risks associated with traditional bank financing. At MyBestLandDeals.com, we offer an alternative path to land ownership that is more accessible and supportive. Whether you’re an investor, a future homeowner, or seeking recreational land, our financing options are designed to help you achieve your land ownership dreams in a financially sustainable way.