Can I use land as collateral for a loan?

Hello fablegerm,

Yes you can use land as collateral for a loan. There are many mortgage companies/banks that can pull cash out using a lot loan, home equity line of credit (HELOC) or other specialty loans. What state is the property located in would be my first question and how much are you looking to pull out compared to the value of the land?

Brock Gratton
themortgageskinny.com

Well, the land is located in TX. It was appraised at 12,070, and I am looking to borrow 5,000.

Hi Fable,

Yes, you can use land as collateral for a loan. As you have the ownership of the land free of any liens there will not be much problem getting a loan.

But you will have to contact few lenders before selecting any particular lender and compare the rates they are offering.

Hi Fable and Brock,

Welcome to our community. :)

Thanks for sharing your knowledge Brock. I have also gone through your site and it seems interesting.

Hope you enjoy visiting the community forums.

Regards,

Jessica

Welcome Fable.

You can use the land as collateral if you are interested to take a mortgage loan. You need to contact lenders and shop for a suitable loan that will suit your budget.

Hi Fable,

You may contact any of the lenders in our Community. They provide various loan programs which require the land as collateral. Just Request for Free Consultation and provide the minimum details.

We shall forward your request to our community lenders and they shall contact you if their profile matches with your requirements.

Do let us know if you have further queries.

Thanks,

Caron.

I have 6 ac. of land in tx. What is needed, besides the deed, to get a loan fast?

Hi shasta,

Are you willing to use a vacant land as collateral to get the loan?

Well as far as I understand, the land should be free of liens. Or else lenders won't agree to provide a loan on it. You need to have proofs of your income (pay stubs for the past 2 months) and a copy of your credit report so that the lender can check them before you get pre-qualified. Tax returns for the past 2 years should be there to show that you have been a responsible tax payer.

You should have documents to prove your assets (original bank statements, listing of saving bonds etc) and source of down payment, if any.

Regards,

Jessica.

Jessica pretty much laid it out for you Shasta. All I would ad is to visit a mortgage bank. The reason being they can typically do a loan faster that a loan officer or broker because they underwrite (e.g. they use thier own money) the loans themselves. Another quick route which I do not recommend unless you are desperate is a hard money loan. They do not check your credit at all they just varify the value of the land and typcially will lend 70% of the value.

Hope this helps and welcome this seems to be a great community! :D

Hi Cliff,

Welcome to the forum.

I have seen some of your posts and it seems you are knowledgeable and have experience in this industry. Why do not you introduce yourself and let the community know about yourself at http://www.mortgagefit.com/introduce-yourself.html

Hope you will enjoy participating and helping people in this forum.

Best of luck,
Larry

NEED 10000 TO MAKE EXTRA IMPROVEMENT TO MY HOME FOR, TO START MMRD PROGRAM

I have 3 acres of land that I am trying to use as ccollateral for an emergency loan located in Alabama

Welcome MALCOLM and Wilma.

Whether you can get the loan or not depends on your credit and source of income. So if you have a good credit and income and also enough equity then you can get it with ease. By the way, have you contacted with any lender yet? You can go for no-obligation free mortgage quote from the community lenders. Hope it helps. Let me know if you have any further queries.

Hi, I have been reading a few of the postings and see alot of great information. However, we have 75.67 acres of land my husband inherited from his father free and clear. There are no leins on this land. We are wanting to get cash out of the land to consolidate other debts we have. Is this possible and if so, who can we contact? Credit is not perfect, but it is not poor either...All help is greatly apprecated.