Land loans tend to be an area where conventional lenders may show some degree of aversion. These types of loans are considered trickier to value based on the location and they are also considered riskier. In most cases, land loans will not go beyond 50% to 65% maximum loan-to-value unless the land happens to be in a location with high desirability or the borrower has properties they are able to cross collateralize.

With land loans, there are also different types of land to consider. For example, there is developed land, raw land, or a full subdivision. If commercial or residential properties surround the land, typically this will result in greater appeal as collateral for a lender.

Factors that may also affect a land loan include whether it is the first time a borrower is seeking money for a development, their experience, and how much cash has been invested in the project.

Should you wish to learn more about hard money land loans or if you’re interested in hard money for commercial or single family home purchases, we are here to help.

This update is by hard money lending Miami company Monroe Funding Corporation, a direct equity lender serving clients throughout Central and South Florida. We specialize in first mortgages on non-owner occupied residential and commercial property investments as well as real estate loan options. Our fast and flexible loan programs get you to the closing table quickly and professionally. For more information on hard money lenders FL or hard money loans Miami, please call 954-816-0388 or fill out our application.