Need lending on lakeshore property - Posted by batpro

Posted by zach on June 13, 2006 at 20:38:59:

getting a loan over 50-60% on raw land you don’t even plan to develop with the loan. not gonna happen…

Need lending on lakeshore property - Posted by batpro

Posted by batpro on June 12, 2006 at 23:23:25:

I own free and clear 300’, 3 acres on a 5,000 acre beautiful lake in Northern Minnesota. The tax assessed value is $120,000 however it would easily sell for $200,000 or more, it is one of the better locations on the lake and has a great gentle slope to the water. The property has been increasing in value $25-30,000 per year. I do not have a house on the property. I do have a driveway, new septic system and a new 36 foot RV. I would like to get a equity line of credit with virtually no or little to no closing costs at a reasonable interest rate.

Which large banks have programs to loan against bare land without a residence?

I tried US Bank becuase they have great rates on equity lines however they would not loan against bare land, seems dumb to me since I own it free and clear and lakeshore is in more demand then houses are around here. Anyway, I do not plan to use the money immediately, I just want to access it to acquire properties initially then refinance them after purchase.

Which banks will give 75-80% LTV on lakeshore land without a house?

Re: Need lending on lakeshore property - Posted by Ed Garcia

Posted by Ed Garcia on June 13, 2006 at 10:07:41:


Your best candidate for a land loan would be a small local bank. They should look at the deal you?ve described at 25% if you?re in a rural area and 50% LTV if its in a metropolitan area.

Owning the property free and clear allows you to do a land draw to do a construction loan to build a house. The bank would give you 100% financing if you can show cash flow and ability to pay.

Ed Garcia

Re: Need lending on lakeshore property - Posted by RJ Baxter

Posted by RJ Baxter on June 13, 2006 at 09:14:00:

What is the purpose of getting the loan–

You could probably get a lot loan, but I don’t know if they can be done as a (refinance) line of credit. These loans are designed to be interim loans where there is a balloon payment due in either 3 or 5 year typically, so you have to pay off the loan in full or start the construction of a home within that time frame (with the construction loan paying off the lot loan). This is the only type of loan that I am familiar with that you could get on bare land.

Re: Need lending on lakeshore property - Posted by batpro

Posted by batpro on June 13, 2006 at 16:20:22:

As I described in my first post, the loan is for: To have quick money avialable to acquire SFH’s, then after they are acquired I would get a loan against the property and pull out a little money for me and repay my equity line on the lakeshore property.