If you’re looking for land for sale in Lake City, you’re in luck – there’s plenty. Whether you want a farm, a ranch or timberland to use as an investment, we can help you find it. However, there’s always the question of financing… so what are the three types of land that a conventional lender will let you get a loan for? This guide explains.
3 Types of Land You Can Get a Loan For
There are three main types of land that you can get a loan for:
- Raw land
- Unimproved land
- Improved land
Here’s a closer look at each.
Raw Land Loans
Raw land is land that is completely undeveloped. It has no electricity hookup, no utilities, and possibly no road access. It can be difficult to get financing for raw land, especially if you don’t have a plan in place for development. In some cases, interest rates are higher on raw land loans than they are on other types of land loans; additionally, you may have to come up with more money as a down payment on raw land than you would if the land was considered unimproved or improved.
Related: Search owner financed land for sale here
Unimproved Land Loans
Unimproved land is very similar to raw land. However, it’s a bit more developed. It may have access to these, and it’s more likely to have a road leading to it. These loans are typically a little easier to get than raw land loans are, simply because the property is easier (and less expensive) to develop.
Related: All about owner financing (so you don’t have to get a conventional loan)
Improved Land Loans
Improved land is land that’s already populated with utilities. It has road access, it’s connected to the electrical grid, and it most likely even has access to the water system and other utilities. Generally, interest rates and down payment requirements on improved land are the most favorable for borrowers when compared to other types of land loans.
Are You Buying a Home or Land for Sale in Lake City?
If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.
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