Whether you’re dreaming of building a secluded cabin in the woods, or a luxury home overlooking the city, acquiring land is the first (and arguably most important) step towards custom property development.   Structures can be changed, but the land is forever.  And not all land allows all things.  When you finally find the right piece of land, it is important to secure it when possible.

Unfortunately buying land is not always easy.  Conventional lenders are often not willing to accept the challenges and risks associated with lending on vacant land.  Paying all-cash is of course an option for some, but will deplete available capital.

Cloudburst Financial offers vacant land loans, which enable qualified borrowers to finance their land purchase and thus save available cash for important projects like permitting, drilling for water, and site preparation.  “Cash is king,” especially when developing your custom property.  Financing your land purchase keeps more cash in your pocket, and increases your options moving forward.

Working with a land loan usually invoves three stages:

1. Acquire the land, prepare the land.  Once the land is identified, accepted by the lender and purchased, you can get to work designing and preparing the land for construction.  This step can take far longer than many realize (years), and a land loan can be very helpful in allowing you to plan and prepare without the added costs and complexities of other mortgage types.
2. Construction.  When you are ready to begin the construction, typically a new construction loan will step in to replace the land loan and provide funding for building.  Cloudburst does not offer construction loans, but they are readily available from more conventional lenders.  Alternately, the build can be funded with cash in which case a new loan will not be necessary.
3. Completion and final refinance.  Once construction is completed and a “certificate of occupancy” is obtained, any existing mortgages can be replaced with a conventional mortgage of your choice (widely available with far lower rates!).  At this point it’s time to releax and enjoy your new property!

Cloudburst offers vacant land loans at varying terms depending on the scenario, but as a starting point our loans feature: