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what steps would I take to use the land as colateral

Posted on: 19th Sep, 2007 02:07 pm
I have about 55 acres free and clear, I would like to get two things accomplished.
1: Pay off debt and up grade my home
2: Get a much needed tax break.

What steps do I need to take to get this accomplished?
You can get a loan against your land. But for that you need to shop around with lenders.
Posted on: 19th Sep, 2007 10:59 pm
None of the commercial banks will lend you the money keeping land as collateral. Some financial institutions are there to lend you by they will charge you quite high interest. And those lenders are making the decision completely on the value of your land.

As a first step you need to contact hard money lenders who will lend you the money keeping land as collateral.
Posted on: 19th Sep, 2007 11:14 pm
Hi Yvonne,

There are many lenders in the market who offer loans by keeping the land as collateral. Such type of loan is called land loan. But you may be charged a higher interest rate and a larger amount of down payment for this type of loan. But like other mortgages, you will also get a tax break on the interest rate of the land loan.
Posted on: 20th Sep, 2007 12:17 am
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