Is a mortgage on undeveloped land possible?

Karl Sweet · Joined: 24 Aug 2006 Posts: 3

I live in Texas, but have learned of some property in Kansas City that was some of the first land purchased by my great, great grandfather from when he settled there in the 1860’s. It is property my mother is familiar with and we would really like to get the property back in the family someday. I believe it’s a twenty-acre plot that is still undeveloped.

Would a mortgage company do a mortgage on undeveloped property?

And, if by chance the current owner isn’t ready to sell, but would (hypothetically) accept an offer as much as doubled of what they paid for it, would a mortgage company shy away from the selling price because it looks inflated?

If so, what are my options short of offering the property owner a cash buyout?

Thank you for your time,
Karl Sweet
Spring, Tx

The Mortgage-Pro · Site Admin Joined: 19 Jan 2005 Posts: 2248

You are talking about a land loan. Those are typically done by local mortgage lenders.

Karl Sweet · Joined: 24 Aug 2006 Posts: 3

Which were,

If by chance the current owner isn’t ready to sell, but would (hypothetically) accept an offer as much as doubled of what they paid for it, would a mortgage company shy away from the selling price because it looks inflated?

If so, what are my options short of offering the property owner a cash buyout?

The Mortgage-Pro · Site Admin Joined: 19 Jan 2005 Posts: 2248

Mortgage lenders are very conservative. They will not lend you more money than the property is valued at.