Land Purchase Loan :

A land loan is used to finance the purchase of a plot of land. They’re used
when a buyer is interested in buying a piece of land to build a home or utilize
for business purposes. If you’re interested in obtaining a land loan, the type
you take out will depend on where you’re buying land and how you intend to
use the land.

Someone wishing to buy a lot of land for constructing his / her own house can
avail this loan.

Key tips for when you want to get a land purchase loan:
 Always have the property professionally surveyed before you buy. Make
sure you have all of the information regarding property lines,
easements, and access. You also need to be sure that the property is
properly zoned for your plans.
 It’s easier to finance property that has some improvements such as
cable, electricity, sewers, water, even roads to get there that add value
to the land.
 Raw land generally requires a larger down payment in order to get a
land purchase loan.
 Some property loans are categorized as commercial loans by the
underwriters and the loan process will be considerably different than
qualifying for a residential loan.
 Depending on your income, where the property is located, and your
intentions for the property, there may be government assistance
available to help with the purchase.
 Whether you build right away or not you will owe annual property taxes
and you need to be prepared for that.
Land Purchase Loans provide financing for when you find a lot where you’d
like to build a home and the land is sold without a home on it already.
Improved property is easier to get a loan for than unimproved property.