“Vacant land is considered by lenders to be a higher risk for underwriting, along with adjustable rate mortgages, and lodging units,” explained Diego Lopez, owner of Global Mortgage in a recent interview. His insights helped explain why land sales have been the flatest of all in the past year.
With interest rates higher on land, and an increasing amount of downpayment required – you may want to take the approach one of my local clients. Being a savvy investor and weathering through many market turns, my client refinanced his primary residence at 5% and is using the cash from his equity to buy land within the next 30 days. As a cash buyer, he has the most powerful leverage when negotiating. And the loan costs on his refi are much, much lower than any mortgage he could get to purchase the land.
Watch this video segment of my in-depth interview with Diego for some insights as to land loan trends and why it may be the best time to buy land on Kauai:
Diego Lopez, Global Mortgage
Cell: 808 639-6008