To finance a home on a vacant lot you will need to obtain a construction loan. These vary drastically when compared to residential loans since they are directly associated with building a house. Construction loans have different terms and bring different value to the borrower. Here are the steps simply outlined to build your dream home from the ground up.
If you are considering purchasing land to build a home, it is important to understand that the loan necessary to purchase the land will be quite different compared to your regular mortgage. Here are some of the key points to understand when you are pursuing a land loan:
Christine's Corner: The Williamson Act and Santa Cruz County
The Williamson Act was established to permit eligible property owners to enter contracts with local governments for the purpose of restricting specific parcels of land to agriculture or other related open space use. The objectives of the Williamson Act were identified to:
protect agricultural resources,
preserve open space land, and
promote efficient urban growth patterns.
In return, the restricted parcels are assessed for tax purposes at a rate consistent with their actual use, farming and open space, as opposed of their potential full market value.