Location is everything in real-estate. If you’ve found the right site for your next home, you likely want to secure it as soon as possible.
Current Land Loan Interest Rates: 7.35%+ (7.9%+ APR)*
15-year term, fixed rate, prepay anytime
A vacant “improved” lot loan (defined as land with water+sewer+electricity) allows borrowers to purchase the lot they want, without needing to immediately commit to the complex and time consuming task of construction. Designing a new home and organizing the finances required to complete an entire property can require considerable time. A lot loan allows borrowers to take their time with the process, often enabling better decisions and a more smooth transition into the new home.
Every situation is unique, however the process of working with a lot loan usually involves three stages:
- Acquire the lot, design the home and prepare for construction. Once the lot is identified, accepted by the lender and purchased, the home design process can begin. Because you now own the lot, you know exactly what the land will allow, and the entire process from finding contractors to choosing paint colors can proceed at your own pace.
- Construction. Once the design and contractors are in place, typically a new construction loan will step in to replace the lot loan. 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 at this stage.
- Completion and final refinance. With construction completed to your satisfaction, a far simpler (and cheaper!) conventional mortgage can step in to replace any existing mortgages. Mortgages on completed homes are widely available, and once obtained you can relax and enjoy your new home!
Cloudburst offers lot loans at varying terms depending on the scenario, but as a starting point our loans feature:
- 10-15 year terms, $15-250k limits
- Prepay anytime, no penalties
- Fixed interest rate, fixed monthly payment
- Minimum 25% down
- Streamlined "no doc" process for well-qualified borrowers
- Lending for land only (we do not offer financing for construction or development)
- Washington State only
Fill out the brief form below and we will start looking into lending options for you!
* Available on Washington State property only. Subject to qualification of both property and borrower. Rates listed are minimums, assuming well-qualified property and buyer with 30% down. Rates, terms and fees are subject to change without notice.
