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What credit to buy land?


 

The purchase of land for construction or not often requires financing, different solutions are possible.

The consumer loan

The consumer loan

A consumer credit makes it possible to finance a purchase up to an amount of 75,000 dollars and over a period of 7 years, or 84 months. It is actually possible to buy land with this type of loan, whether affected or not, via the personal loan. You should know that some households will buy land as part of a construction project, then they will finance their construction several years later via other financing or on their own finances. It is also possible to buy bare land, without a construction project, whether to have arable land, a pasture or for any other activity. It is necessary to be aware of the purchase price and notary fees will be included in the financing, concerning thedrafting of the authentic deed of ownership.

Home loan

Home loan

Financing land with a construction project is possible via the mortgage, obviously the amount of the two projects must be at least 75,000 dollars. The advantage is to be able to include everything in a single financing with a particularly attractive rate, the duration can also be smoothed (maximum duration of 30 years, or even 35 years with the mortgage loan) depending on the repayment capacity of the household and its needs. However, it will provide a guarantee on the property, whether by way of mortgage or deposit through a bonding company. Notary fees will be expected for the purchase of the land, and as part of a mortgage guarantee, only the land will be affected. It is also possible to add works to the funding.

Credit consolidation

Credit consolidation

When a buyer already has outstanding credits, he can turn to the credit consolidation to redeem them and add the amount necessary to purchase the land. The bank will propose to group the credits in progress within a single contract and to add the sum necessary for the acquisition. With a single contract, the repayment terms can be adjusted and therefore the duration will be rescheduled, which will allow with the fixed rate to have a tailored monthly payment. Regarding the guarantee, if the borrower already has real estate, he can rely on it to guarantee the acquisition of the land. As part of a purchase in tenant status, a guarantee will be put in place on the ground as for a mortgage.

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