Lot Loans in Missouri

Lot loans finance the purchase of a land plot. Those interested in buying land to construct a home or business can benefit from a lot loan. 

Lot and land loans offer an option for home builders with a vision to build in the future. Borrowers can utilize the funds to purchase the lot or land and build when they are ready.

Buyers must make a down payment for the property, and the down payment amount can vary based on certain criteria. Borrowers best suited for lot loans in Missouri generally meet the following criteria:

• Provide a thorough explanation of the intended use
• Demonstrate financial stability through sufficient income and credit history
• Highlight necessary property checks, such as zoning, surveyed boundaries, land-use restrictions, and access to utilities

If borrowers meet all criteria, lenders determine the loan’s terms and, upon agreement, approve them. Then, borrowers are responsible to make a down payment and repay the loan. 

When ready to build, qualified borrowers can transition lot loan financing to another personal loan type. Alternate loan options include construction or permanent mortgage which are subject to separate underwriting.

The Benefits of Lot Loans in Missouri

Lot loans in Missouri offer numerous advantages if you want to build a new home. The most obvious benefit of applying for a lot loan is the opportunity to construct the home of your dreams. Lot and land loans provide flexibility when building plans are incomplete or immediate construction isn’t possible.

These loans offer financing options that align with your timeline and allow you to secure the parcel of land until you’re ready to begin construction. The Bank of Old Monroe’s lending team is ready to assist you in obtaining the financing solution that best suits your needs.

These loans also offer financial advantages by securing today’s land prices for future development opportunities.

Lot loans in Missouri offer unique advantages over traditional mortgages or construction loans for financing land purchases. One key benefit is their flexibility, allowing you to secure desired property without an immediate commitment to construction. Lot loans offer ample time to plan and design your dream home on your schedule.

Unlike traditional mortgages, lot loans offer a unique opportunity for those planning to buy land and build their home in the future. Construction loans, on the other hand, require immediate building plans. If you are ready to build, a construction loan may be suitable.

Lot loans offer flexibility and stability.

Lot loan repayment periods in Missouri vary based on the borrower’s financial situation and the loan’s terms. Loan Terms can be tailored to individual needs.

Potential fees associated with lot loans can include origination fees, title search fees, appraisal fees, and others. Review the overall cost of the loan and its additional charges, and consider these fees before committing.

Choose from various lot loan financing options to find the best choice for your financial needs. Potential financing options include:

• Home equity line of credit (HELOC): Those with enough home equity can decide to borrow against it through a line of credit. HELOCs establish a maximum amount you can borrow from when needed, making it an excellent option for land purchases.
• Local bank financing: The Bank of Old Monroe lending team possesses deep local market knowledge and can assist in financing your project. We value relationships, customize and individualize customer solutions, and maintain strong partnerships with local builders and experience.

The lot loan application process at Bank of Old Monroe is straightforward and customer-friendly. First, you must complete an application. Then provide personal identification, proof of employment, and financial statements. 

Our credit assessment focuses on your current financial situation while also considering your financial history, credit score, and employment stability. Evaluating your financial capabilities helps identify a loan solution that best aligns with your goals.

After you submit your application, our team will review it during underwriting. Be prepared to supply additional information during this time. Lastly, we’ll discuss loan terms upon approval, ensuring you understand the financial commitment before proceeding.

Contact the Bank of Old Monroe to Apply For a Lot Loan Today

Bank of Old Monroe has served customers with banking and financing needs since 1906. Customers trust our personalized solutions, and so can you. Our lending team helps identify and obtain the lot loan and financing method that best suits your goals. 

We’re here to answer any questions and guide you through the process. Contact a member of our lending team or the branch nearest you today to learn more about our lot loans in Missouri!