Land Loans are short-term loans collateralized by land. Investors looking for construction loans who do not have plans and permits approved will find attractive a loan based on the As-is Value of the land.
Standard Loan Terms
- Max Loan Amount: 55% of appraised value or
purchase price (The lowest)
- Rate: 8.5%-9.99%
- Term of loan: 12-24 months
- Payments: Monthly interest payments with
balloon at maturity
- Prepayment penalty: None
Standard Closing Costs
- Origination Fee: 1-2%
- Underwriting Fee: $1,500
- Legal: $750 – $1,500
- Appraisal Fee: $500-$4500
- Title Insurance and recording fees: 1%
- Land Parcels
- Credit Application
- Last 2 bank statements (US bank account)
- Copy of ID and Borrowing Entity docs
- Purchase Contract (If Purchase)
- Property Insurance
Standard Closing Time
- The usual time to close is 5-10 days.
RBI Mortgages is a direct lender and does not rely on other institutions to close the loans. Once the title work and appraisal are ready, We will be too!