How do you build on land with a lot loan?
One rule of thumb for buying a house is location, location, location.
Finding the right location is crucial to creating a home you want to stay in forever.
But what if you find the right location in North Carolina, but there isn’t a home on the property? It’s time to think about buying a lot and building your custom home in the perfect spot.
While many people know how to find a home to buy, there are fewer instances where people know how to buy a lot. But there are plenty of resources out there to help you obtain lot loans in NC and create the home of your dreams. And that’s what Mortgages By Jill is all about. Here’s how you can build on land with a lot loan.
What is a lot loan?
A lot loan, or a land loan, is much like a loan to buy a house; it allows you to have the finances necessary to purchase a lot and build a home or business on it. These are different from construction loans used for short-term projects that are already ready to go. Building a home takes time, and you shouldn’t feel rushed to get started right away. Finding a great lot loan allows you to set up your perfect home and work with the right contractors.
How do I build a house with a lot loan?
There are a few different types of lot loans you can apply for, and they differ depending on the status of the land. For example, if you have land that isn’t ready for construction, you’ll want to get a raw land loan. This loan allows you to implement necessary elements for residential construction, such as electricity, sewage, roads, etc. If you have land with a few elements available, you may want to apply for an unimproved or improved lot loan. It’s best to work with a professional to determine what loan is right for your situation. Once you get your loan, you can start working with an architect and contractor to develop and start plans for your home.
What are the benefits of getting a lot loan?
While lot loans may be used less, they are incredibly beneficial for homeowners. It allows you to create a customized home that’s tailored exactly to your preferences. And you can focus on finding the right location instead of the right home, which gets rid of any availability restrictions. And there are often more lots available than houses for sale. There may be some cons to getting a lot loans, such as potentially higher down payments and interest rates. But the pros far outweigh the cons when you build the home you’ve always wanted in the very spot you want to live.
I’ve worked with many potential homeowners who can’t find the right home. That’s when we start exploring lot loans and discussing possibilities of purchasing land to build a new home.
My job is to help you find your ideal lot, explore loan options, and make your ideal home a reality. Contact me today to learn more about lot loan options and how you can build your home using a lot loan plan.
