Profile picture for GerikDobish

Is buying land more of a risk for a lender causing more money down?

I want to purchase for personal use and possible investment in NY (where I live). Can I use other properties appraised above what is owed as collateral also?

  • September 07 2013 - US
  • 0Yes

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Answers (1)

Profile picture for SoCal Engr
In my experience, it required a larger down payment. When I asked the lenders, the reasoning was that land is a bigger risk, as it is harder to get their money back (smaller pool of buyers) than property with an existing house.

I do not know about using other properties as collateral. My guess would be that lenders would want things "cleaner".
  • September 07 2013
  • 0Yes

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