If you have tried to get a bank to finance a piece of raw land, you have probably heard no, or been offered terms that do not work. That is not about you. It is about how banks view land.
Land is hard for banks to resell
A house can be resold quickly if a buyer stops paying. Vacant land, especially rural land, can take much longer. Banks see that as risk, so they either decline or require large down payments, short terms, and high rates.
Small deals are not worth it to them
Many rural parcels sell for less than $50,000. The cost of underwriting, appraisal, and servicing a small deal is about the same as a large one, so many banks simply do not offer them.
No collateral income
Land usually does not produce income, and there is no structure to insure. Banks like collateral that holds or produces value on its own.
What you can do instead
Owner financing lets you skip the bank. With FinanceLandAsap, you bring us the parcel, and if it qualifies we buy it in cash, then sell it to you with seller financing. This is not an offer to sell or an offer of credit. Every property and every seller financing term is subject to our review and approval and is not guaranteed.
This article is general information, not legal or financial advice, and not an offer to sell or an offer of credit.
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