| Answer: Land loans are simply hard to get because | | | | how many lenders can you think of that would offer |
| of three reasons. These reasons are: | | | | you a land loan for the 160 acre recreational land you |
| 1) Land loan lenders are limited in number compared | | | | want to purchase. |
| to home loan lenders. | | | | Because there is a limited amount of lenders who |
| 2) Few land loan lenders specialize in land loans and | | | | offer land loans, this makes it harder to obtain a land |
| only land loans. | | | | loan. This is simply a matter of supply and demand. |
| 3) Land loans are in nature riskier loans. | | | | More people are purchasing homes than land. So, |
| 1) Land loan lenders are limited in number compared | | | | more banks offer home loans than land loans. As the |
| to home loan lenders. I bet if you wanted to | | | | supply of land loan lenders decrease, the harder it is |
| purchase a home or refinance your current home | | | | for the consumer to not only find a lender but |
| you could automatically think of several lenders that | | | | develop a relationship with their lender. |
| would love to compete for your home loan. Now | | | | |