Super Contributor
Posts: 6,025
Registered: ‎09-18-2007

Is land loan considered as Real Estate loan?

Is loan obtained for purchasing a land is considered as the same as home loan from fico stand point of view?
Senior Contributor
Posts: 4,596
Registered: ‎09-14-2007

Re: Is land loan considered as Real Estate loan?

Good question.

I would think that it would depend on the particular financing instrument you use.

For example, if you go through a mortgage company to get it, and the financing instrument IS a mortgage, then I assume FICO would treat it as a home.

On the other hand if you went to your banker, and took out a loan with the land as collateral, I assume using the same logic that it would be treated as a personal loan, or maybe even a HELOC, or LOC.

Why don't you call up any title company and ask them?

My real estate expertise is long gone.

Perhaps Lady_Scarlet will see this and chime in. :smileyhappy:
"Never ever, ever be late. Never" (FUTR)

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+