Question:

Are there stated income land loans?

Answer:

Stated income land loans do exist - as all other loans, land loans do come with full and reduced documentation possibility. However, loan to value ratio may be only 70 to 85% for stated income land loans; loan amount may be limited and up to 2 years cash reserves may be required.

Land or lot loans are seen as construction loans. To fund land loans, lenders may demand that the soil components are suitable for construction works and that there is some infrastructure already available to the lot. Also, small lots or lots of irregular shape may be deemed unreliable for financing from lenders.

Stated income land loans typically will not exceed 80% LTV; full doc land loans my go up to 95%. Excellent credit borrowers may enjoy different benefits, such as waiver of certain requirements, lower cash reserves, etc.

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