At Listerhill Credit Union, you can obtain a low-interest land loan to cover the costs of purchasing a plot of land for your home or business needs.
A land loan provides you with financing to secure a lot of land and cover the costs for up to 15 years. The type of land loan you get may include a raw land loan, unimproved land loan, or an improved land loan.
Once you’re ready to build, you can secure a different type of loan to cover construction costs.
| Type of Land | Risk For Lenders | Expected Interest Rates and Down Payment | |
|---|---|---|---|
| Raw Land Loan | A raw land loan is for property with zero improvements | This poses the highest risk for lenders, so it is the most challenging to secure | You can expect to pay the highest interest rate and make the largest down payment |
| Unimproved Land Loan | An unimproved land loan is for property with some infrastructure in place | This poses a lower risk for lenders, so it is easier to get approved | You can expect to pay fewer upfront costs and a lower interest rate |
| Improved Land Loan | An improved land loan will have the most infrastructure and improvements in place, making it easier to build upon | This poses the lowest risk for lenders, so it is easiest to get approved. | You can expect to pay the lowest upfront costs and secure the best interest rate. |
Get up to 100% financing on select mortgage products.
Consult with one of our friendly loan officers about a payback term that fits your goals.
Conveniently pay off your loan through Online or Mobile Banking, automatic payments, or your local branch.
Get into a home with a low adjustable rate or at a fixed rate set by the market.
Build the home (or addition) of your dreams.
Don't have the cash to put down? Qualify for a low (sometimes no) down payment with FHA, USDA, or VA mortgage loans.
| Loans | APR | Maximum Term |
|---|---|---|
| Land Loan | as low as 4.75% | 15 years |
* All rates and terms are subject to change without notice.
All loans and credit cards subject to credit approval; Actual rate will be determined by the credit worthiness of the borrower. Other restrictions may apply. Rates are subject to change without notice. Equal Housing Lender.
When qualifying for a land loan, we will take a look at your financial background to determine whether you have the profile to support qualifying for a loan.
A down payment: Since there’s potentially more risk involved in getting a land loan, you might need to put down a larger than usual down payment. The more improved your land is, the less you can expect to pay in down payment costs.
Home details: Your lender will also want to view the details around your land and the land plan, confirming that it meets all zoning and land-use restrictions.
Debt to income ratio: We will review your debt to income ratio (DTI) to ensure you don’t have more debt than your income can manage. A recommended DTI, including your mortgage payment, is no more than 43%.
Steady income: Whether you’re self-employed or have a W2 job, we want to ensure that you have a stable work history showcasing your likelihood of being able to afford your property now and in the future. Two years of consistent employment are typically required to qualify for a land loan.
Credit history: Your credit score is a significant indicator of your financial responsibility. We will review your credit history and credit score to determine whether you have the background that showcases your ability to manage payments.
Ultimately we will take a look at your full profile and speak with you directly if needed to help you qualify for a land loan.
When you purchase land, you want to ensure that it can be used for the desired purpose. That involves having certain information about the land in advance, such as the items listed below:
Yes because choosing the right lender for your home loan or refinance can lead to a better transaction overall. This is especially important if you are a first time homebuyer or attempting to qualify under special circumstances.
At Listerhill, our focus is on “people helping people.” When you purchase a home, we want to offer you the support you need from application to closing.
As a nonprofit cooperative owned and operated by its members, you own an equal “share” in Listerhill and vote in elections for the Board of Directors and Supervisory Committee. That means your voice is always heard, and in turn, our actions reflect your needs and desires.
Our mortgage rates, terms, and policies will always reflect your needs in securing the best credit union mortgage loan in Alabama.
Securing a mortgage through a credit union is preferable for many seeking to purchase a new home or refinance. Credit unions often offer more competitive mortgage rates in Alabama and are more flexible with their terms and conditions.
Listerhill has been consistently been rated in the top tier for overall satisfaction by our members. While we hope you find the information you need online, we'd be happy to talk with you about questions you may have. Call us at (256) 383-9204 or 1-800-239-6033 for friendly, local assistance. Or even stop by one of our branches for personal service.
Answer a few questions and we will find a solution that works for you. It only takes a few seconds.
Home equity loans provide you with the opportunity to chase dreams to the fullest. Enjoy a vacation with the whole family, invest in a household remodeling project, or even finance an upcoming vehicle purchase with only a few clicks. If you can dream it, you can achieve it!
Home equity loans rely on a loan to value ratio (LTV) to disburse funds, meaning that your credit score and home equity value should be fairly substantial to take advantage of all possible benefits. For assistance in the home equity loan pre-approval process, please speak with your local Listerhill Credit Union branch.
Also known as a second mortgage, home equity loans work by borrowing against the value of your home’s current equity. You may calculate this yourself by subtracting the amount you owe on your mortgage from the value of your home. Home equity loans provide lump-sum funds at fixed rates, creating affordable monthly payments that are consistent and affordable.
When you purchase land, you want to ensure that it can be used for the desired purpose. That involves having certain information about the land in advance, such as the items listed below:
Refinancing your home loan can be a great option to secure a better loan for your current circumstances and future goals. It makes sense to refinance your mortgage if one of the benefits will be helpful for you:
If doing any of the above would benefit you, refinancing might be the next best move.