Board Topic: Looking for a loan for land
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Getting a land for land

Posted by: mraymus Nov 20 2004, 01:03 PM
I own approximately 60 acres of land in South Carolina. I need to refinance it to a interest only loan for a year or two while I work on getting it sold. One of the tracts has a resale value of 142K and I owe 55K on it. The other tract is worth 115K and I owe 87K on it. I'd like to merge the two together and make a single payment with low interest rates and interest only for at least 2 years while I work on getting it resold.

So the total amount I'd need to refinance would be around 150K.

Some information about me. I am currently self employed, but I have 30K in the bank as cash flow and I've been averaging around 10K per month in income. My household expenses are around 5K and my business expenses are around 1K. Also, there are some tenants on the land, so there is some income off the land, although it is currently insufficient to cover the mortgage, which I why I need some time to refinance and get some lots sold. I originally thought that having tenants was the best way to go, but I am currently in the mindset of selling the land for cash as quickly as possible.

Posted by: loanuniverse Nov 20 2004, 06:43 PM

My employers do not usually lend on land when it is bought for the purpose of selling it {speculation}. When they finance land it is usually for developers that will within a very short time {think at most a couple of years} start building something. On the other hand, something of this size could probably be done on the consumer side of a bank where commercial lending guidelines could be bent.

Maybe one of the non-bank lenders that visits here can give you a hand. Combined loan-to-value is around 55% so it might interest some of the lenders. Be aware that they will surely charge at least a couple of points upfront.

Good luck

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