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Established Contributor
ztnjpv
Posts: 726
Registered: ‎02-01-2012

Does buying land pass for mortgage loan?

[ Edited ]

One thing I lack on my credit reports is a mortgage. My credit was bad when we bought our house and the mortgage is in my wife's name only. I've since bought a rental house but it didn't end up on my report because it was considered commercial. I was kinda suprised by that. Not sure if it was just the bank's policy or if it's always that way. 

 

Does buying land count as a mortgage for credit reporting purposes? Anyone know? I don't have the full mix of types of credit and thought this might be an easier way to achieve that.


Starting Scores (Sept 2011): All lower-mid 600s. CURRENTLY: TU FICO: 801 (3/28/14), EQ FICO 808 (3/28/14), EX FICO 798 (9/4/13) (PSECU). Goal: Achieved! Now Maintain!
Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: Does buying land pass for mortgage loan?


ztnjpv wrote:

Does buying land count as a mortgage for credit reporting purposes? Anyone know? I don't have the full mix of types of credit and thought this might be an easier way to achieve that.


Yes, provided the loan is a mortgage loan. There are some examples in here of land purchases being treated as an installment, but that's up to the bank.

 

IMO, I wouldn't spend thousands of dollars in interest just for a few extra points at best on your FICO score. Buy it if you need to buy it, but I wouldn't buy it for the sake of a FICO score. You can certain hit into the 800s without a mortgage as many on here have.

 

 

Established Contributor
ztnjpv
Posts: 726
Registered: ‎02-01-2012

Re: Does buying land pass for mortgage loan?

llecs,

 

thanks for the reply. I wouldn't buy useless land just to pump my score a little. Its just an idea in case I see something potentially useful for building. 

 

Of course, I could just get my name on the mortgage we have and be done with it. ;-)


Starting Scores (Sept 2011): All lower-mid 600s. CURRENTLY: TU FICO: 801 (3/28/14), EQ FICO 808 (3/28/14), EX FICO 798 (9/4/13) (PSECU). Goal: Achieved! Now Maintain!

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