Mortgage lenders won’t go near lot loans for many reasons – and here are a few: (1) regulators, investors, and creditors prohibit them from doing lot loans; and (2) lot loans are much riskier – which is a main reason why regulators, etc. won’t let mortgage lenders do lot loans. Lot loans are riskier because land values are more volatile; land is much less liquid as collateral; it is harder to generate income from land; zoning issues are more prevalent; and more expertise is required to understand and exploit land values in general.Read More