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A new park down the street can raise property values in the coming years, while a new highway or sewage treatment plant is less likely to do so. For residential lots, having access to utilities is a significant factor. Having water, sewer, electricity, and cable hookups see credit report free to go saves a lot of time, money, and hassle. Similarly, public road access can be a vital issue since the buyer will have to secure a permanent easement to access a public road if one is not already available.

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In this way, getting land loans is always trickier than buying an existing house since a current house gives the bank immediate, tangible collateral. However, developing a building immediately often has less risk than developing the land later, as there are more variables that see credit report free prevent development in the future.

The Federal Deposit Insurance Corp. FDIC has established lending policies issued to institutions regarding the loan-to-value limitations for land. Some land may not yet be ready to be developed on.

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For example, a project in this vein could involve buying land in anticipation of the completion of a new freeway nearby.

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