Arizona Land Loans might contain some initial expenses that are higher than those for mortgages. However there are a number of ways you can reduce these expenses and get your loan for less.
Arizona Land Loansare great! They allow you to get the financing needed to purchase a plot of land, on which you can build the home—or anything else—of your dreams. Still, they can sometimes propose a higher risk for the lender, which means they usually require higher expenses for the buyer. Don’t worry, though; there are ways around these costs, allowing you to easily obtain this financing option.
Lenders might require higher down payments for Arizona Land Loansbecause of the financial risk they are taking in lending you the money. With some lenders, this down payment might initially be as high as 50%. To minimize this upfront cost, you may want to discuss with the lender the fact that you plan to build on the land soon. If you and your lender can determine a date in the near future on which construction will begin, they will often be willing to lower the initial payment you’re expected to offer.
Sometimes, lenders will require higher interest rates in order to protect their investment. While this can initially seem like a problem, you may be able to get your lender to reduce interest rates as well when you promise to build on your land sooner rather than later. This is another way you can reduce costs and begin building as soon as possible.
Arizona Land Loanscan require a shorter payback timeline than you may be used to with a mortgage or another type of loan. This might create an added expense… if you’re not sure how to get around it. If you choose a lot land loan, most lenders will give you a longer period of time to pay the loan back than if you were to choose a raw land loan. This means lower monthly payments, and often, fewer expenses overall.
Absolutely! If you follow the tips explained for you here, it’s easy to reduce the expenses of your loan and to get started on the building process ASAP.
We can help you choose the best option for your needs and ensure that your expenses are as low as possible. Come in today to speak with an experienced lender and get your loan!
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About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.