Frequently Asked Questions
Why choose Land Line Lending?
Our company was founded by land brokers that saw a gap in rural lending and created a solution. We value quality customer service, clear communication, quick funding times, and competitive rates and terms. We finance all types of land including agricultural, timber and recreational. With multiple funding sources, we have the ability to find the best loan program to fit our clients’ needs.
Land Line Lending customers can rest assured that their financing needs will be met by industry professionals who are dedicated to packaging the right loans while providing an exceptional customer experience. Simply put, we are simplifying loans for land buyers!
What is the minimum qualifications required for a Land Line Lending loan?
We require a minimum loan value of $100,000, a minimum of 15+ acres, and a minimum of 25% down.
Can collateral be used as a down payment?
Yes. You can use a combination of cash and collateral as a down payment. However, the collateral used must be a qualifying land tract of at least 15 acres and $100,000 in value.
Are your loans non-recourse?
Yes. Our loans are non-recourse loans meaning that any collateral used to secure the loan can be foreclosed on if the buyer was to default on the loan.
Can I add someone to my loan after closing or submitting the application?
Yes, but this will prompt additional information. If you add someone to the loan it will prompt a refinance of the loan. If you want to add someone as a co-owner of the property without being liable for the loan, it will be processed as a modification.
When is my interest rate locked?
The interest rate is locked when the loan is approved and the appraisal/title have been completed and are satisfactory for loan requirements.
What supplementary information is required for the application process?
-Application
-Full financial statement (personal & business if applicable)
-1-3 years of tax returns (personal & business if applicable)
-Financial account verifications
Do you have a pre-approval process?
Yes! We can pre-approve you during your land search. If approved, we will supply you with a letter that is good for 30 days. Keep this letter handy for any offers you wish to place.
What do you look for when pre-approving?
We calculate our pre-approvals based on your Debt to Asset ratio. Our underwriters require a Debt to Asset ratio of less than 50% before and after the debt of the property is included. Bankruptcy can also influence your ability to receive pre-approval. If you have filed for bankruptcy within the last 7 years you would not qualify for a loan.
What is the benefit of getting pre-approved?
Many sellers request pre-approval at the time of offer. Getting pre-approved before beginning your land search can save you time when you find the perfect property. Additionally, the pre-approval process will help you to recognize any notable funding situations you may be unaware of. This can save you valuable time and money once a contract is in place!
What loan fees will I see during the lending process?
Loan fees are closing costs that are paid in addition to your down payment at the time of closing. These costs can include, but are not limited to:
-Origination Fee
-Tax & Documentation Service Fee
-Appraisal Fee, if applicable (loans under $500,000 are eligible for a valuation which leads to a faster turnaround & it’s less expensive)
-Survey Fee, if applicable
-Any applicable Abstract or Title Fees
-Any closing fees associated with an attorney or title company
Is PMI and escrow included?
Great news! PMI is not required on land. The buyer is responsible for annual tax and insurance payments.