Can I get a collateral loan against my vacant lot?

Hi Guest!

Welcome to forums!

You will be able to get a second loan or a home equity mortgage depending upon the amount of equity that you have in your property.

Feel free to ask if you've further queries.

Sussane

My husband and I purchased 5 acres of land (bank foreclosured) in May 2011 for $59,000 (bank listed property at $58,900 we offered over list price). There are 2 other 5 acre lots in the subdivision right now for sale for $68,000 each (also bank owned). The property I purchased sold in 2006 for $240,000. The land is in a highly desirable area with surrounding properties on 5-10 acre plots and currently assessed between $400,000-$1 million. The property is located off a paved road and has complete access. It is within 5 minutes of all shopping and a brand new school. Needless to say, we got a great deal, but since Florida's housing market is down, nobody is buying lad right now. Since we purchased the property, my husband is having surgery and being sent through Voc Rehab to retrain him in another job field. The VA is sending him to law school in another city so we need to purchase a house in another town. We own our property outright and have considered taking a loan out against it to purchase a mobile home and land or a small house to use while my husband is in law school for 3 years. We both have excellent credit (780-800 depending on the company used) with nothing negative on either of our credit histories. We own everything we have (including vehicles) and we pay our credit card in full each month. While my husband is in law school, we will have a monthly income of approx $2500 a month. What is the liklihood we could get a equity loan on our 5 acres to purchase another property outright? Any tips to use to get a loan? We already have a small bank that has agreed to give the loan, but they only want to loan $30K which wouldn't purchase another property outright which would render the equity loan useless since we are only looking to take on 1 loan, not 2.

Hi JS,

As you own the property outright, I don't think you will face any problems in getting a mortgage on that property. You can contact the local lenders and apply for a mortgage. This community has a large number of lenders. You can seek a no obligation free mortgage quote from them and check out if you will be able to get a mortgage.