The only way to obtain more than 80% financing for a PA lot is to obtain a home equity loan on your primary residence, if possible. This often ends up being a more economical option for people.
Lot loans usually have a balloon because the lender wants you to build a house in a few years... Lots are not the best collateral from their perspective.
We have 1 lot loan that does not have a balloon. It is a 3/1 ARM. Pocono (Monroe, Pike, Wayne county) properties are not eligible. This is also the lowest rate loan we have.
The minimum lot loan amount is $40,000.
Larger loan receive discounts.
Lot loans are only available for primary and secondary residence.
We have one lot loan program that allows for a rate and term refinance of an existing lot loan.
"Cash-out" land loans are not eligible. (You can not take a land loan out to do anything but buy a land or pay off an existing lot loan. No debt consilidation lot loans, etc.)
What is a Lot?
A" lot", defined by the lending guidleines, is a vacant piece of land zoned residential, with no house or structures on it.
Land with a trailer or tear down house is not a lot according to lender guidelines.
Land with any structure on will not qualify for a lot loan.
If a parcel of land has a structure on it it is only eligible for a rehab loan where the loan would include fixing up or removing the structure, resulting in a new residence/structure that is worth more than the land it sits on.
