Grand Rapids Mortgage Company

Riverbank specializes in land loans in Michigan for buying land, vacant land or hunting land. They offer mortgage terms up to a 30 year fixed with current land loan rates around 5.00 to 6.00 percent. Many clients decide to pay off their land mortgage within 5 years or 60 payments can take advantage of a 5/1 ARM which is fixed for 5 years with some of the lowest land loan rates available. The rule of thumb is the shorter the length, the lower the interest rates so choose what is best for you.

Today is an fantabulous time to purchase land in Michigan. There has not been a period of time in our lifetimes better to purchase hunting land or to acquire farm land. Property values have dropped significantly over the past a couple of years and land loan rates are also very attractive. While there are few land loan lenders in Michigan, they are able to offer outstanding funding programs. We recommend a Michigan Land Loan for financing.

Top 3 Problems for borrowers Purchasing Land

Loans on land are inherently more risky for lenders because there is less demand for these properties. As long as new home construction is slow, many people are not looking to buy land that they can build on. If a land lender has to foreclose on a property then they may have a difficult time selling the land to recover their money. Land typically takes longer to sell than land with homes therefore many lenders do not offer land loan options.

At Riverbank Finance LLC or minimum credit score is a 660 credit score to buy land or get a land mortgage but typically our investors would like to see higher credit scores. Credit score requirements to purchase land may can be an issue if you have recent late payments on other loan obligations or lower credit scores. If your credit score is under a 660 and considered low you should do what you can to improve your credit score before attempting to purchase land in Michigan. This will help you to have lower land loan rates and lower payments when you do buy land.

Down payments may be another issue for those interested in purchasing land in Michigan. Most land lenders require 20% for your down payment. For example, if you are buying 20 acres of vacant land for $100,000, you would need a down payment of $20,000 in addition to the costs associated with closing.

An accomplishment that you can pass down through the generations of your family tree is owning land. We will eventually run out of land and it will become our most valuable resources and the price to buy property will rise. Once you buy land it can be passed down for generations for your grandchildren to hunt or grow farm crops.

For those that want to purchase land in Michigan give Riverbank a phone call at 800-555-2098 and get pre-approved for a vacant land loan now!