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Vacant Land Financing

Michigan Land Loan

Michigan land loan

A Michigan land loan is meant for people who want to purchase a piece of land to construct a home or to use as recreational property for hunting or camping. Each type of property has its own requirements and loan process however most loan types are flexible for your needs. The parcel of property may be in a well-developed area or in a very rural area depending on your usage. Many lender have strict requirements on properties having electricity, well and septic however if you do not intend to build a home this is an unnecessary requirement.

Down Payment Requirements

Buying vacant land with no money down is typically only an option if you are purchasing from a family member that has equity in the property. For example, if the property is worth $50,000 but they are selling it to you for $40,000 then the 20% equity requirement would already have been met by them selling it to you at a discounted price. Many times this is the case so the land can be kept in the family however an appraisal may be required to determine the land value.

Land Loan Requirements

We have land loan options for real estate with a minimum loan size of $10,000 and no maximum loan size. A minimum credit score of 660 is required for most of our vacant land loan products however we may have financing options down to a 520 credit score on a case by case basis. The land itself must be accessible and not "land locked" which means there is no public roadway to access the property.

Land Loan Lenders

There are not many land loan lenders in Michigan because such properties do not conform to conventional mortgage guidelines sent by Fannie Mae and Freddie Mac. Many large banks only offer loans that can be resold on the secondary market. Some local lenders and small home town bank may offer financing however they typically do not offer long term fixed rates such as a 30 year fixed mortgage that we can offer. To see if you can qualify for a Michigan land loan complete the short form below for pre-approval.