Loan used to purchase land. There is more risk connected with the purchase of unimproved land than improved property, therefore, a mortgage for unimproved land will usually have a higher interest rate.
Very specific financing for acquisition of land. Different types of land considered: Raw/Undeveloped, Developed or Special use
Financial institutions generally like to finance existing dwellings not future dwellings. In order to finance a block of land for the purpose of building requires a specialised product which usually requires a greater deposit. Large blocks of land, primarily for the purpose of sub division generally will fall under a commercial / development loan.
Where the funds are predominately being used to purchase land for eventual construction.
A loan for the purchase of property, which is held pending zoning or financial approval.