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Super Contributor
concorduser
Posts: 6,025
Registered: ‎09-18-2007
0

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
Sylviatob
Posts: 4,596
Registered: ‎09-14-2007
0

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:
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