If you are interested in purchasing undeveloped land in Georgia, financing the acquisition is a key issue to consider. Many Atlanta metro and northern Georgia real estate professionals recommend using cash to purchase undeveloped real estate. Of course, purchasing any type of real property with cash oftentimes is easier than done. With that noted, one financing option available to you is a land loan or land mortgage.
Obtaining a land loan can be a challenge
If undeveloped Georgia real estate is classified as raw land, meaning that it lacks basic improvements like sewer lines, obtaining a land loan or mortgage loan can be challenging. Undeveloped land can be a risky proposition. The costs of developing such real estate can prove significant and even ultimately prohibitive. Consequently, even if a land loan is made available, the interest rate attached to the mortgage is apt to be relatively significant.
Seller-financial of undeveloped land purchase
In some cases, a person who desires to purchase undeveloped real estate may be able to obtain financing via a seller. Georgia real estate law certainly permits this type of real estate sales transaction. A good number of owners of undeveloped property may be willing to finance a sale because they have been unable to sell a parcel of real estate via a more conventional financing scheme.
If you do desire to purchase undeveloped land with an eye do development, bear in mind that obtaining a land loan or land mortgage will not be the only type of significant financing you will face. For example, in order to develop the real estate, you will likely to obtain a construction loan or a series of construction loans.