The nation's largest originator now finances vacant land.
Countrywide Home Loans Inc. recently announced it will finance lot purchases for properties that will either be owner-occupied or used as a second home.
The Lot Loan Program, as it is dubbed, is being offered by the Calabasas, Calif.-based mortgage banker through all of its divisions, including wholesale and correspondent channels, spokeswoman Janet Quan told MortgageDaily.com.
Loans made under the new program, available only in 14 states initially, have a two-year term with a one-time, optional six or 12 month extension, the statement said. The adjustable rate mortgages are based on the prime rate and require interest-only payments.
"A consumer can work with us to find out whether they qualify for a lot loan and at the same time, if they choose to, they can apply for the funds needed for construction of the home and the purchase of the home after construction is completed," said Jack L. Haynes, executive vice president of Countrywide's National Builder Division, in an announcement.