Land Loans: Everything You Need To Know

March 25, 2024| admin| 0 Comment | 12:00 am

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What is a Land Loan?

A land loan, also known as a plot or lot loan, is a financial option allowing individuals to purchase a piece of land using credit. This type of loan is suitable for those who intend to acquire land without immediate construction plans. It’s important to note that land loans differ from home loans or construction loans. It can be used for both residential and business purposes.

Types of Land Loans

Land loans can be categorized based on the level of land development. Each type of land loan necessitates distinct preparations to convince lenders to provide financing. Let’s explore the different types:

LOAN FOR UNDEVELOPED LAND (RAW LAND LOAN)
- Undeveloped land refers to properties without road access, water supply, electricity, or sewer lines, rendering the land unsuitable for immediate construction. While raw land is the most economical option for purchase, it also requires higher down payments and interest rates to secure a loan. The Federal Deposit Insurance Corp. (FDIC) sets a minimum down payment of 35% for undeveloped land. Additionally, to obtain a raw land loan, you’ll need a well-structured and detailed plan for the land’s development to convince lenders that it represents a calculated risk.
LOAN FOR SEMI-DEVELOPED LAND (UNIMPROVED LAND LOAN)
- Semi-developed or unimproved land typically possesses some basic infrastructure, although it may need more amenities such as phone boxes, natural gas, or electric meters. Financing a loan for unimproved land is less risky than undeveloped land but still requires a rigorous process. The FDIC’s minimum down payment standard for unimproved land is 25%.
LOAN FOR DEVELOPED LAND (IMPROVED LAND LOAN)
- Developed lands, often called lots, come with access roads and all the necessary utilities for residential construction. Although improved lots are more expensive, they tend to have comparatively lower land loan interest rates. Lenders are also more inclined to finance this type of loan, with the FDIC setting the minimum down payment for improved land loans at 15%.

image of draft of a house on raw land purchased with a raw land loan

Advantages of Taking a Land Loan

Land loans offer several advantages for individuals who need more time to build on their purchased land. These advantages include:

Flexibility: Land loans provide the flexibility to secure land for its potential, such as in areas with upcoming business opportunities or future development. You can hold the land until the timing is right for your construction project.
“Blank Canvas”: Acquiring land before any construction allows you to start with a “blank canvas.” You can envision and create your dream home or commercial space according to your preferences and needs.
Transition to Construction Loan: When you’re ready to build, your land loan can be seamlessly integrated with a construction loan to finance the land purchase and construction costs. Ultimately, this can transform your land loan into a standard mortgage when you’re ready to move in.

Disadvantages of Taking a Land Loan

Despite the advantages, land loans come with certain disadvantages, mainly due to the higher risks involved:

Limited Lender Options: Lenders for land loans can be limited in number due to the inherent risks, which may limit your choices when selecting a lender.
Stricter Qualifications: To secure a land loan, you must meet more stringent qualifications than a standard mortgage.
Higher Down Payments and Interest Rates: Land loans have higher down payment and interest rates than traditional mortgages. These additional costs are a result of the higher risks faced by lenders.

To mitigate these disadvantages, having a well-defined construction plan, including a set timeline and cost estimates, can increase your loan approval chances, is essential.

Land Loan vs. Other Land-Buying Options

If you encounter difficulties meeting land loan qualifications, alternative methods exist to finance your land purchase. Some options cater to home-building purposes, while others are designed for commercial space.

SELLER-FINANCING
- Seller financing is where the seller acts as your lender in a land contract. This arrangement can be more flexible and suitable for those who may not meet traditional bank loan requirements. It’s essential, however, to engage an attorney to review the land contract to ensure clarity and prevent potential gray areas or loopholes.
HOME EQUITY LOAN
- Another method for purchasing land is through a home equity loan, where you receive a lower interest rate against your home’s equity. It’s important to note that defaulting on this type of loan could lead to the risk of losing your home.
HOME EQUITY LINES OF CREDIT
- Home Equity Lines of Credit (HELOCs) provide a flexible way to access funds over a specified timeframe using your home’s equity. You can use a HELOC as a down payment for a land loan and repay the HELOC amount and interest.
USDA LOAN
- The USDA offers a land and construction loan designed for low to moderate-income families planning to build a home in a qualified rural area. This option can particularly benefit those seeking a more affordable land and home construction path.
SBA LOAN
- Small Business Administration (SBA) loans are available to assist small business owners in financing raw land and construction costs for commercial buildings. The SBA 504 loan program provides fixed-rate financing with a 10% down payment, 40% loan financing through the Certified Development Loan, and 50% provided by a bank or credit union.
PERSONAL LOAN
- A personal loan can also finance your land purchase. While this approach can offer flexibility, it can have higher interest rates. You may also need to compare its shorter repayment periods with the rest.

Looking for a Land Loan?

Securing a land loan can be more challenging than obtaining a standard mortgage. However, you can increase your chances of approval with proper preparation. A credit union consultant specializing in land financing can provide significant assistance in navigating the process and ensuring your specific needs are met when purchasing land. Explore your options and receive expert guidance by scheduling an appointment with us today.

Canopy Credit Union | Everything You Need to Know on Land Loans

Local Medical Marijuana News: Understanding Cannabis Legislation Near MeLocal Medical Marijuana News: Understanding Cannabis Legislation Near Me

Through the swirling mists of time,the realm of law pertaining to medical cannabis has been subject to dramatic oscillations across our planet. Where once stood stern legal barriers that prohibited its use,there now exist more flexible frameworks acknowledging and embracing the potential healing powers nestled within this controversial plant. The labyrinthine laws navigating medical cannabis display vast disparities from one nation to another and even amongst differing jurisdictions within a single country’s borders. This ever-evolving legal tapestry is a testament to the intricate challenges inherent in striking a balance between societal norms,medical viewpoints,and legal interpretations regarding cannabis usage. In this context,staying updated with “Local medical marijuana news near me” becomes crucial,offering an avenue to understand the specific nuances and developments in one’s immediate vicinity.

In certain nations,legislation around medicinal cannabis has laid down stepping stones towards building comprehensive programs that enable its application for qualifying maladies such as relentless pain or multiple sclerosis. These initiatives shine their spotlight on ensuring patients have secure and regulated access to this form of treatment whilst keeping a firm grip on quality control and potency levels. Conversely,nations sporting conservative hues persistently categorize cannabis under illicit substances restricting its procurement to an exceedingly narrow bracket of health conditions if at all permitted. Notwithstanding these polarities in perspective,there echoes an enduring international dialogue aspiring towards harmonizing laws governing medicinal marijuana with an aim for uniformity and justice in securing access to its prospective benefits.

Exploring the Health Benefits of Medical Cannabis

In the maze of manifold decades passed,a tapestry of thorough studies and probing research have unwrapped a plethora of health boons tethered to medical cannabis deployment. One such notable merit lies in its power over chronic pain management. Laden with cannabinoids,a unique family of chemicals boasting the capacity to assuage pain,medicinal marijuana stands as an effective challenger against conventional narcotics in the arena of pain control.

However,the healing prowess possessed by medicinal cannabis isn’t restricted merely to mollifying discomfort. Its application shines brightly in another domain – gaining control over epileptic seizures and varied neural maladies. Moreover,it teases potential success when pitted against mental health monsters like Post-Traumatic Stress Disorder (PTSD) and anxiety disorders – offering glimpses into an expansive universe where medical cannabis could be wielded as a potent tool.

7 Advantages Of How Small Business Phone Systems Can Reduce Your Costs7 Advantages Of How Small Business Phone Systems Can Reduce Your Costs

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In today’s ever-evolving business landscape, the clear call for growth is louder than ever, especially for small businesses. To thrive in their respective industries, small businesses must adapt and become more operationally efficient. However, there’s often skepticism when it comes to adopting small business phone systems, especially in a world where landlines and mobile subscriptions are common.

If you’ve found your way to this article today, you’re undoubtedly seeking answers to a crucial question: how can small business phone systems help reduce your operational costs? Rest assured, we’ve taken the time to crunch the numbers for you. Dive into this article to uncover the advantages of embracing phone systems, such as VoIP, for your small business.

#1 No to Minimal Hardware Costs

A cloud-based phone system delivers substantial hardware cost savings by requiring significantly less equipment than traditional phone systems. A cloud-based VoIP phone system equipment includes an internet connection and the devices your employees already own.

For instance, if you adopt Company-owned Personally Enabled (COPE) devices, this can become an expensive investment over time, particularly if you need to purchase a dedicated smartphone for each employee. Consider the Samsung A-series, known for reasonable prices and powerful smartphone technology. It costs $160 per employee, which can be paid at $5 monthly for 36 months. Additionally, you’ll need a cellphone plan with unlimited text, call, and data, costing $50 per month. If you have ten employees, this results in a monthly expenditure of $550 for three years.

In contrast, a VoIP phone system allocates a dedicated line to each user rather than a specific device. As long as there is an internet connection, employees can make or receive calls from various devices, including mobile phones, laptops, or landlines. A VoIP phone system can provide up to 20 dedicated lines for a monthly fee of $10 to $30. If you have ten employees, your VoIP system can offer ten dedicated lines, costing you only $10 to $30 monthly.

#2 Lower Communication Costs

Communication costs are significantly reduced with VoIP phone systems, as there are no charges for long-distance or international calls over the Internet connection. This is particularly important for small businesses with remote workers or those targeting international markets.

For example, cellular services often offer international calling plans at an additional cost of up to $10 per month for reduced international rates. However, even with these plans, a single call to Canada can cost $0.05 per minute, and calls to China can reach $0.15 per minute. These charges can add up to $10 per month and more. In contrast, a VoIP system eliminates charges for international calls while maintaining high-quality voice communications.

#3 Multiple Services in One

Most VoIP phone systems offer bundled features, eliminating the need to purchase separate services from multiple vendors. Your VoIP phone system is an all-in-one solution, including video conferencing, customer service call routing, and more.

For reference, stand-alone video conferencing apps can cost $30 monthly, while customer call service apps can add $25 to your monthly expenses. With a VoIP phone system, you benefit from bundled services, resulting in cost savings and simplified service management.

#4 Lesser Maintenance Costs

Traditional phone systems require ongoing maintenance of equipment and lines, often necessitating the involvement of technicians for repairs and updates. According to HomeAdvisor, the typical telephone system repair cost ranges from $92 to $212.

In contrast, VoIP phone systems offer managed services where your provider maintains your system online, handling system updates and hardware upgrades at no additional cost on your end.

#5 More Flexibility

A flexible phone system empowers you to leverage remote work options, saving money on rent and utilities. You can establish a remote or hybrid workforce model, expanding your talent pool and increasing employee satisfaction. With VoIP’s cost-effective flexibility, it fosters clear communication among you and your employees no matter how far away you are from each other.

#6 Scalability

Scalable phone systems allow you to adapt as your business grows. With a VoIP phone system, you can add or reduce the number of users you need, eliminating the need to pay for extra features and lines that may go unused. This cost-effective scalability ensures you get the most value for your investment.

#7 Hidden Costs Also Give More Savings

While some VoIP providers may offer “free phone equipment” with lower monthly costs, these supposedly free devices often lack advanced features, including gigabit ethernet. At Face-2-Face Telecommunications, we carefully select models that meet our stringent criteria at a reasonable price. While most VoIP phone systems cost $10-$30 monthly, ours is priced at $35 monthly, providing great and reliable equipment to support your business operations.

Learn more by clicking the link below.

F2F Telecommunications | 7 Advantages

Economize And Bring In Income

In contrast to well-known perception,making the shift to solar doesn’t have to break the bank and can maybe even put cash back into your wallet!When you make the switch to solar energy,you mostly use the power that you produce and,when you do use energy from the grid,you can strive to do so when the electricity is at its least expensive. Solar Info Here Solar panel Installation Doncaster

Cut down Your Effect on The Natural environment

The energy that your solar energy panels develop is one hundred% clean and renewable and involves no burning (on our earth anyway!) which in turn means there are no discharges of damaging greenhouse gases generated. On the other hand,the electric power from power stations may be created from burning fossil fuel.

Independence from the Network

Energy prices have never been greater,and as customers we’re never quite certain when the following cost hike is going to be put into effect,sending our individual budget plans and monetary plans into chaos.When you shift to solar power,you cut off yourself from the subconscious burden of unforeseen cost hikes.

State Rewards and Aid

Because of the attempts of the State to lessen the level of climate change,and the different sustainability goals that they will need to achieve,there are now considerable enticements to switch to solar power at home. More UK Energi

Home Worth Boost

When solar power panels first started being installed on domestic roof tops,a lot of house owners were concerned about decreasing the value of their home – after all,a solar array isn’t the prettiest thing to have ever adorned the top of a building.
These days however,as a result of ever increasing electricity prices,as well as a raised awareness of environmental accountability and protecting our planet,this assumption has changed,with the addition of solar power photovoltaic cells on a rooftop adding to the value of a home.

Low Upkeep Technology

Solar energy panels in reality only call for a quick examination every year to ensure they’re working optimally. It’s also very good to make sure the panels are kept clean and aren’t eclipsed by trees – do this,and your solar panels ought to last well over 20 years.

As you’ll now understand,it is now much easier than ever to shift to solar energy power. Click on this link today Solar panel Installation Doncaster