The Pros and Cons of Land Loans
2 Min. Read
While ownership is a dream many people want to fulfill, buying and financing land comes with a unique set of considerations for borrowers. Before you decide to buy land, it’s important to weigh the pros and cons.
Pros of Buying Land
The chance to build your dream home
Buying land allows you to build a home to your exact specifications. In some areas, ready-to-build lots are also less expensive than purchasing a new home.
Flexibility to build when it suits you
If you buy raw or unimproved land, you can hold on to the property until you’re ready to build. Owning land allows you the flexibility to build on and use the property as you want to.
Cons of Buying Land
Taking a risk with raw land
Buying land can be riskier than buying a home, which is why it’s so important to be aware of zoning, access, and land use restrictions. Also, land doesn’t appreciate in value the same way as developed property.
The added complexities of land loans
Land loans often come with more stringent qualifications than traditional mortgages, as well as additional requirements like your land use or development plan and fulfillment of various property checks. Plus, not all lenders offer land loans or may not offer the type of land loan you need.
It’s up to you to weigh the costs and benefits of buying land and make the best decision for your financial goals.
Get a land loan with Marine Credit Union
If you have your sights set on a piece of property you want to call your own, Marine Credit Union can help you find the right loan to reach your goals. Get in touch with a Marine Credit Union lender today.
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Jennifer Tucker
Jennifer Tucker is a freelance writer for Marine Credit Union. She has held roles in banking, marketing, and public relations during her 15+ year career. She holds a bachelor’s degree in communication with a minor in journalism from the University of Portland and a master’s degree in communication from Marquette University.
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