Cape Coral Lots for Sale: Facts about Financing that Every Buyer Must Know. When there’s talk of waterfront properties, Florida always rounds out the picture, and as part of the conversation chain reaction, you can’t search for “waterfront real estate in Florida” and not encounter houses for sale in Cape Coral. Still, there are those who want to start from scratch and prefer to buy Cape Coral lots for sale so they will be able to develop the land themselves or bring to life their dream home. If such is the case for you, then you must think about and plan well for financing. Yes, a land and lot loan is something you’ll have to be familiar with and you can begin learning by reading on.
Lot and Land: The Significant Differences
Though the terms “lot” and “land” are similar, they still have major differences that you need to know. For one, all lots fall under the scope of land, but not all pieces of land can be classified as lots. Basically, lots are properties that are ready for house construction, wherein it has or is close to utilities, such as sewer, gas, electricity, and water. On the other hand, raw land is usually a property that is not yet suitable for building a house and could require more work or preparation. Your choice (between a lot and land for sale) can influence a lender’s decision.
In case you do invest in a residential Cape Coral land for sale from established companies like Cape Coral Lots, you ought to know that lenders favor improved property (a lot that’s ready to be built on) over raw land. This is due to the fact that unimproved land is more of a speculative investment. Unless a lender sees great potential and understands that you have immediate plans for improving the property, he’ll most likely reject your loan application, or approve it but you’ll have to prepare for a hefty down payment and high interest rates. Needless to say, as much as possible, people are better of investing in improved lots or land.
Facts on Land and Lot Loans
At the start of your financing journey, you’ll notice that not too many banks or financial institutions offer land and lot loans, so be prepared to do considerable legwork to find a reliable lender. Take note that some lenders may ask as much as a 50 percent down payment, so you’ll need to be financially set to shell out a huge sum. Finally, several lenders require borrowers to make and sign a statement of intent that they will start constructing on the property before a deadline, and failure to do so could result in the borrower needing to refinance or searching for a new lender.
(Source: Land & Lot Loans: The Dirt on Financing Your Property Purchase, LotNetwork)
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