FAQ Category: Home Equity Land Loan
Do you finance land purchases?
No. We lend only against vacant land you already own; we do not finance land purchases. Have more questions about a Land Loan? Start your Land Loan conversation with Home Equity Specialist at People Driven Credit Union. Connect with a Home Equity...
Continue ReadingWhat exactly is a Land Loan?
A Land Loan is a closed-end term loan secured by your vacant land. It has a fixed payoff date, predictable monthly payments, and your land serves as collateral. Have more questions about a Land Loan? Start your Land Loan conversation with Home Equity...
Continue ReadingHow can I use the funds?
Common uses include site preparation, utility runs, property taxes, debt consolidation, or other qualified needs. We will confirm your intended use during application. Have more questions about a Land Loan? Start your Land Loan conversation with Home...
Continue ReadingWhat terms are available?
Terms are available up to 240 months (20 years), subject to credit approval and program guidelines. Have more questions about a Land Loan? Start your Land Loan conversation with Home Equity Specialist at People Driven Credit Union. Connect with a Home...
Continue ReadingWhat fees should I expect?
Members pay all fees, including a 1% origination fee and third-party closing costs such as title, appraisal, and recording. You will receive an itemized estimate before you proceed. Have more questions about a Land Loan? Start your Land Loan conversation...
Continue ReadingWhat do you look at to qualify?
We review your credit and income, the appraised land value, acceptable lien position, clear and insurable title, legal access or road frontage, and any flood or environmental concerns. Have more questions about a Land Loan? Start your Land Loan...
Continue ReadingWhat types of land are eligible?
Generally, eligible collateral is vacant land you already own with legal road access and clear, insurable title. “Vacant” means no habitable dwelling on the parcel; sheds, fencing, driveways, or wells may be acceptable subject to underwriting....
Continue ReadingDo I need an appraisal?
Typically yes. A land appraisal or other valuation is usually required. Requirements and costs will be confirmed upfront. Have more questions about a Land Loan? Start your Land Loan conversation with Home Equity Specialist at People Driven Credit Union....
Continue ReadingHow much can I borrow?
Your approved amount depends on the appraised value of the land, your credit and income, and program loan-to-value guidelines. We will present clear numbers after valuation and underwriting review. Have more questions about a Land Loan? Start your Land...
Continue ReadingHow long does it take to close?
Closing time varies based on title work, appraisal scheduling, and document collection. We will give you a timeline and keep you updated throughout the process. Have more questions about a Land Loan? Start your Land Loan conversation with Home Equity...
Continue ReadingIs this the same as a HELOC?
No. HELOCs typically require a dwelling. For vacant land, a closed-end land-secured loan with fixed payments is the standard approach. Have more questions about a Land Loan? Start your Land Loan conversation with Home Equity Specialist at People Driven...
Continue ReadingCan I use this as a bridge to construction financing later?
Possibly. Construction financing is separate, but a land-secured loan can help with site prep or other needs beforehand. Our Home Equity team can outline steps and timing if building is on your roadmap. Have more questions about a Land Loan? Start your...
Continue ReadingAre there prepayment penalties?
Prepayment terms are disclosed in your loan agreement. Ask us and we will explain your specific options before you decide. Have more questions about a Land Loan? Start your Land Loan conversation with Home Equity Specialist at People Driven Credit Union....
Continue ReadingDo property taxes or insurance factor in?
You are responsible for property taxes and any required insurance. We will confirm that taxes are current during processing. Have more questions about a Land Loan? Start your Land Loan conversation with Home Equity Specialist at People Driven Credit...
Continue ReadingWhat documents will I need?
Plan on a recorded deed and legal description, recent property tax bill, title work, and government-issued ID with income and credit verification. A survey or plat may be requested if needed. Have more questions about a Land Loan? Start your Land Loan...
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