What Are The Difference Between Home Loan And Land Loan
Buying a new house or a plot of land may not look to be different to a lot of people. Both purchases would be referred to as purchasing property; however, there’re differences which should be taken into account while seeking loans. Home loans are available for properties that are under construction, need rehab or are complete turnkey structures, whereas land loans are accessible for buying a plot of land for building a home or for investment purpose. Here in this blog, we will discuss about the difference between a home loan and a land loan in California . Location of properties & purpose: You can get home loans for turnkey properties, properties under construction or properties in need of rehab, major or minor. You can also get land loans for the purchase of raw, regardless of whether the land is residential, commercial, industrial or has another purpose. Loan to value ratio (LTV)/loan to cost ratio (LCR): Loan to value/loan to cost ratio is the