Can You Purchase Land Through a Personal Loan?

Purchasing land can be a huge investment. It’s important to do your research before jumping into any agreements. Can you purchase land using a personal loan? Keep reading to find out more about this option and other ways to finance the purchase of land.

If plots of land are selling for a pretty good price, you may want to especially purchase one sooner rather than later. This could let you more quickly reap the benefits from capital growth and give you options to build down the track. A personal loan can often be applied for faster than a home mortgage, as there is less paperwork and fewer checks involved. This might allow you to make your purchase that much sooner.

Personal loans tend to have shorter loan terms than a standard mortgage, meaning they can be paid off in years as opposed to decades. When you opt for an unsecured personal loan, you avoid risking your collateral should you default on the loan, which would be the case with a secured personal loan or mortgage.

Personal loan interest rates are usually higher than home loans, and if you have bad credit, your rate could be terrible. Some lenders only offer personal loans for specific reasons like fixing up your house or getting married, so they might not approve a request for another type of personal loan like buying land.

If you have recently applied for finance and been rejected, it’s important to check your credit report. If you see a negative listing, don’t panic – Clear Credit Solutions credit repair experts are dedicated to helping our clients improve their credit reports. We understand how frustrating it can be to be denied finance, so we want to do everything we can to help you obtain the finance you need. Contact us today to find out more about our credit repair service and how we can help you!