I own a piece of vacant land free and clear. I have an immediate need for cash and would like to take out a loan secured by my property.

The land was last appraised at $980,000. I cannot pay a deposit or any upfront costs, but I only need to borrow about 30% of its value.

Is it possible to get a loan like this online, or with lenders other than traditional banks or mortgage companies? Are there lenders who can approve and fund loans in a short amount of time(1-2 days), and how much of an effect will my credit have on the approval process given the low loan to value ratio?

Any help is appreciated. Thanks

  • Have you tried talking to a regular mortgage provider, or a bank? I don't see why a mortgage on land should be substantially different from on a house. However 1-2 days is clearly not going to be possible. It will take more than that for any mortgage provider to satisfy themselves that the land is valued as you say and is actually yours. Aug 15 '12 at 13:31
  • I have spoken to several local and major banks, and from what I can gather most aren't lending on vacant/bare land. I was hoping given the low LTV I could find a lender willing to work with a very short time frame and flexible credit requirements. The property I own was inherited some time ago, and I have never gone through the process of securing a loan before.
    – Mark
    Aug 15 '12 at 14:06

You should be able to get a mortgage on the land which would give you the best rate.

For a fast turn around you will probably need to do something besides a mortgage. I would visit a bank that is local to your property and see about securing the loan. They will have officers who can make determinations quickly. You might be able to get a 60 day loan on the property and then pay it off with the proceeds of a mortgage at closing. This will have some costs associated but will be your best bet if you need a long term loan like a mortgage on short notice.

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