Residential Lot and Land Loans in Pennsylvania and Maryland
There are several different types of land loans, and each option has its own set of qualifications to meet before you can secure financing. In general, to receive a land loan, you will need to prove that you have excellent credit, an acceptable debt-to-income ratio and consistent income. The loan application process is very similar to that of a traditional home mortgage.
Learn more about common types of land loans, the benefits of getting a loan to buy land and why you can trust Orrstown Bank for vacant land loans in Maryland or Pennsylvania.
What Is a Land Loan?
A land loan or residential lot loan allows you to buy a plot of land to hold onto or build a home on. If you're interested in obtaining a land loan, the type you'll take out will depend on any amenities that currently exist on the land. There are two common types of land loans - unimproved and improved.
1. Unimproved Land Loans
Land that is unimproved can sometimes have some amenities and utilities but does not have water and sewer in place. Unimproved land also carries a 35% down payment rate, which is 10% higher than the rate for improved land.
Although this type of loan does not pose as much risk as other land loans, it can still be challenging to obtain. It's important to ensure you have a strong credit score, a large down payment and a detailed plan before applying for this loan.
2. Improved Land Loans
Improved land has water and sewer in place. This type of land has a down payment requirement of 25%, which is slightly lower than that of unimproved land.
Benefits of Getting a Land Loan
Residential lot loans are used in specific instances. A land loan may work for you if:
- You get low interest rates with a small or no down payment requirement with the help of a government program.
- You're buying an empty lot and building a new home for yourself and want a simple way to finance the project.
Why Choose Orrstown Bank for Vacant Land Loans?
When you choose Orrstown Bank for your land loans in Maryland or Central Pennsylvania, you'll enjoy:
- A transparent lending experience with no hidden fees.
- Friendly, community-oriented, professional client service.
Apply for a Lot Loan With Orrstown Bank Today
The team at Orrstown Bank is committed to helping our customers through every step of the lending process. Visit us at one of our Pennsylvania or Maryland branches or call us at 1-888-677-7869 to get started with your residential lot loan today.