PRMI Land Loans
PRMI Land Loans are mortgage loans for purchasing vacant land or Lot Loans. Traditional Conventional Loans do not allow for someone to purchase vacant land or lots. PRMI Land Loans allow you to purchase land without having to build on it. Land Loans are also sometimes referred to as Lot Loans or Vacant Land Loans. You apply for a Land Loan by calling the John Thomas Team with Primary Residential Mortgage at 302-703-0727 or APPLY ONLINE.
What are the Guidelines for PRMI Land Loans?
Vacant Land Loans have the following guidelines:
- Minimum Loan Amount is $100,000
- Maximum Loan Amount is $750,000
- Minimum Credit Score is 660
- Maximum Loan to Value (LTV) is 65%
- No Pre-payment Penalty
- Purchase Loans Only
- Maximum Term Length is 240 Months
What are the Eligible Property Types for Land Loans?
You can use the PRMI Land Loan to purchase the following types of property:
- Income Producing Properties with acreage
- Recreational Property (i.e. hunting)
- Individual Building Lots
- No Maximum acreage limitation (but needs a supported appraisal)
Ineligible Property Types are as follows:
- Development Sites / Speculative Sites
- Properties located adjacent to or containing environmental hazards
- Zoned Industrial or Commercial
What are the Different Types of Land You can Buy?
Land can be classified into 3 categories: Raw Land, Unimproved Land and Improved Land. Raw Land is completely undeveloped land with no electricity, no sewers, no roads, etc. Unimproved Land is similar to Raw Land but it tends to have some development such as some utilities and amenities but would lack electric meter, phone box, or gas meters. Improved Land has access to things such as roads, electricity, and water.
What is I want to Buy Land and Build a Home?
If you are looking to buy land and build a home on it, then a much better option than Land Loan would be a One Time Close Construction Loan. The OTC Construction Loan allows you to purchase the land and build the home all in one loan and one closing. Also the down payment requirement is as little as 5% down or even 0% down on a USDA or VA one time close loan. Below are the loan options for OTC Construction Loans:
- FHA One Time Close Construction Loan (3.5% Down)
- USDA One Time Close Construction Loan (0% Down)
- VA One Time Close Construction Loan (0% Down)
- Conventional One time Close Construction Loan (5% Down)
- Jumbo One Time Close Construction Loan (20% Down)
How Do You Apply for PRMI Land Loan?
If you are interested in purchasing land that you are not planning on building on immediately then the PRMI Land Loan may be the perfect option for you. You can get started by calling the John Thomas Team with Primary Residential Mortgage at 302-703-0727 or you can APPLY ONLINE.