Understanding The Different Types of Land Loans
Purchasing a plot of property (with nothing on it) may seem like a simple transaction, but the process can be more complicated than investing in a house or building that comes with earth that surrounds it. If you are interested in buying a piece of land to use for business purposes, including building an office or facility, you will need likely a land loan. What is a Land Loan? Land loans in Maryland offer credit to qualified borrowers that can be used to purchase pieces of land. Because they aren’t as common as mortgage loans and often are riskier, these loans typically require larger down payments and have higher interest rates. Therefore, it’s important to consider all the different types to make sure you are getting the most affordable and beneficial option for your business. Types of Land Loans There are a few different common types of land loans in Maryland , all with different pros and cons. The option you pick will depend on what you will use the land for—residential bui