Lot Loan – Great Options When Building a Fort Lauderdale Real Estate Property
There are several ways to help you get the funds you need to build a Fort Lauderdale real estate property, and one of them is a lot loan. Many lenders offer this type of loan for two various reasons: 1.) for those planning to build a non-owner occupied home; and 2.) for those planning to build an owner-occupied home. If you fit the two categories, here are great tips to help land the best lot loan rate.
Decide on the loan type
If you plan to live on your Fort Lauderdale real estate property, lot loans offer the best rates. Government supported loans are aplenty and fall under several different programs. It pays to ask your lender about the specific set of programs he offers. Furthermore, if you're asking a lender in the city, he can immediately make a lot loan available since he is likely to be knowledgeable with the local real estate market.
If you plan on building a non-owner occupied Fort Lauderdale real estate property, however, expect to get a higher interest rate since these types of properties are considered as high risk for lenders. Common types of properties that fall under this category are: commercial buildings and apartments.
How to get the best rate
You owe it to yourself to strive to get the best lot loan rate. One way to do this is come up with a higher down payment. Larger down payments automatically translate to lower loan amount, hence lower risk for lenders. There are several lenders who allow down payments of more than 20%. If you plan to come up with such an amount, you can expect to receive much better rates for you loan.
Another way is to ask whether your lender will let you pay discount fees. Paying discount fees can help you lower the lot loan interest rate through a flat fee. Moreover, this flat fee is usually a specific percentage of the total loan amount.
If both of the above mentioned are not possible, however, you can still opt for the old fashioned perseverance. Don't stick on one lender; shop around for more lenders around the city. Be sure to keep your eye open for any special programs, like special rates or first-time buyer incentives, to help you get the best rate for the lot loan of your Fort Lauderdale real estate property. Eventually, you'll find a lender who can give you the most advantageous rate for your lot loan.
Mark Michael Ferrer
Fort Lauderdale Real Estate
