Buying A Home With Land As Collateral Official

However, this path is not without hurdles. Lenders view land-backed loans as higher risk than traditional mortgages. You will need:

Lenders require a professional appraisal of the land’s current value and a "as-completed" appraisal of the future home. buying a home with land as collateral

You must own the land clearly, or have enough equity to pay off any remaining land contract within the new loan. However, this path is not without hurdles