| California Land Financing Budget
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| | residential home loan. There is a larger
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| (Example):Land Purchase Price $300,000
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| | down payment expected typically than a
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| Land Purchase Price
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| | California residential house or condo.
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| Soft Cost of Construction $ 40,000
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| | There is more preparatory work expected
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| Plans and Permits
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| | also. Lenders may expect the borrower or
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| Hard Cost of Construction $350,000
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| | buyer to bring a variety of items to the
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| Construction Costs
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| | lender's table for a construction loan.
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| Closing Costs $ 22,000 Fees, Title, and
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| | Here is a partial list of potential
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| Escrow.
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| | requirements some lender's stipulate in
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| 5% Misc. Reserve $ 17,500 5% of
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| | order to obtain a land loan:Complete and
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| Construction Costs
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| | permissible architectural drawings for
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| Loan Interest Reserve $ 35,000 Interest
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| | what will be built on the land.Detailed
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| On Amount Drawn
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| | time tables for all aspects of
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| Total Building Cost $764,500
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| | construction.Finalized realistic budget
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| Appraised Value $800,000 Estimated
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| | for the building.Supervisory chart,
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| Value of Land with Building Completed
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| | including a list of builder contact
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| Down Payment $191,125 25% of
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| | information for contractors and the
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| $764,500Benefits of California Land
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| | architect assigned.Proof of bonded and
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| LendersLoan officers dealing with
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| | insured builders and contractors.Here is
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| California land should be able to assist
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| | a list of the paperwork required from a
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| you with the following
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| | borrower to get started on a land loan in
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| information:Assessment of the estimated
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| | California:Last 2 years of your federal
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| yearly taxes, insurances, and HOA fees.
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| | income tax statements.Last 2 months of
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| Approximate interest rate for the loan.
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| | pay stubs for both you and your spouse
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| Down payment required.Interpretation of
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| | with contact information.Your property
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| your personal financial statements,
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| | information if you currently own
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| credit scores, and income-to-debt ratios
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| | including tax statements, HOA statements,
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| to conclude your eligibility.Utilities
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| | any current mortgage statements, and any
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| Lead to the Path of FinanceOne important
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| | other debt statements you currently
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| thing to consider as you look to buy
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| | have.Any additional proof of income
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| California land is utilities. When
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| | streams, including child support, trust
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| construction developers go into the
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| | fund, investment income, dividends,
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| construction stage to build new homes in
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| | interest, rental income, social security
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| Southern California then roads and
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| | or government monies.A complete list of
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| utilities are built for a large number of
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| | your bank accounts and documentation,
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| homes. When the lender knows that a lot
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| | including all your checking, savings,
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| has public road access and utilities
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| | money markets, and banking
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| nearby they are often more willing to
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| | information.Some Negatives and
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| supply financing for the land because
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| | PositivesOne draw back is that the courts
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| there is a foreseeable capacity to build
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| | of law in California have less
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| on it which increase the California real
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| | regulations to protect the interests of
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| estate worth and lowers the risk to the
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| | land buyers than they provide to
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| lender. The cost of installing utilities
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| | California residential home buyers since
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| on a lot is not considered part of the
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| | a land purchase is considered an
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| hard construction costs for building.Land
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| | investment. On the positive side, land is
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| Loans from a California Lender's
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| | like having a clean slate of property.
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| POVCalifornia land loans are more risky
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| | California land buyers have a much easier
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| to lenders than residential loans. The
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| | time when it comes to planning what they
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| reason for this is that normally most
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| | want to build, as long as the building
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| people do not live on the land they buy
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| | plans live up to the regulations and
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| since it's vacant. As a result it is
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| | zoning requirements of the city for the
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| industry practice to not consider land a
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| | land's location. As a land buyer CA you
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| primary residence until something is
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| | also have much more flexibility on
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| built, and so it follows that vacant land
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| | getting what you want than doing a
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| is called investment property even if a
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| | residential home remodel for example.The
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| person intends to build on it in the near
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| | best part of all about obtaining a loan
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| future. Also, vacant land is called
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| | to buy land in California is that it
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| commercial property in California, that
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| | forces you to think through the land
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| is property used for an investment
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| | buying process ahead of time, talk to the
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| purpose, even if the land is zoned
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| | right people which you will need to help
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| residential and there are plans in place
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| | you build a new home in Southern
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| to build a primary residence. The
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| | California and make a financial budget
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| importance of this categorization for
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| | with sensible deadlines so that
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| lenders is that their risk increases on
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| | ultimately you can become a true player
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| lending for land because a person can
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| | in the future development of a community
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| walk away from a land loan easier than a
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| | for all to see. Plus you will have a
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| loan on a primary residence since the
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| | really cool story about your personal
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| borrower has another place to live
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| | experience in the timeless process of
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| hypothetically.Lenders for land will
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| | building on California land.
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| expect more from a borrow than on a
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