How to Buy Land to Build a House in Florida

Table of Content

How to Buy Land to Build a House in Florida

Step One: Research Land for Sale

Step Two: Research the Land You’re Interested In

Step Three: Financing Land to Build a House

Step Four: Get Ready to Build a House in Florida

Frequently Asked Questions (FAQ)

How much do you have to put down to buy land in Florida?

Is it hard to buy land and build a house?

Is it cheaper to buy a land and build a house?

Does Bank provide loan for land purchase?

How do I buy land in Florida?

How to find out if land is buildable?

What is the process of buying land in Florida?

How do I buy land without a realtor?

Is it worth buying land to build a house?

How much land do I need to build a house?

What does unimproved land mean?

What does undeveloped land mean?

Why is land so cheap in Florida?

Is buying land in Florida a good investment?

Summary

How to Buy Land to Build a House in Florida

The vacant land home meaning allows dreamers to build a custom house on a lot that has been untouched by other buildings, or at the very least, past buildings have been removed. Here’s exactly what you need to know to buy land to build a house in Florida.

Step One: Research Land for Sale

The free government land in florida is hard to come by and not without its long list of catches. If you’re serious about this process, you’ll want to search not only potential free land but also any tear-down house with land for sale in florida or undeveloped land. You can find the right plot of land to build a house on by searching:

• Online resources like realtor.com or Redfin.
• You can use land-only websites like LandCentral, LandHub and LandWatch.
• Drive around and find lots you’d like to approach or ask locals in the community.

Step Two: Research the Land You’re Interested In

Once you’ve done your search and found the best land for sale in Florida, you’ll want to vet the property. You’ll need to know:

1. How it’s zoned and if you can build a home on it.
2. Any potential setbacks.
3. The local laws you’d have to abide by such as roads, garbage, animal control, etc.
4. Natural hazards such as wetlands or flood zones.
5. The cost of utility hookups and availability if you’re purchasing undeveloped (or raw) land.
6. The water details, like if you’ll need to drill a well or if there are public/private water companies available. You could also be on a shared well agreement, need to haul water, etc. This information is also crucial for the financing part of the process.
7. Cell and internet service availabilities, especially if you plan to make this your primary residence.
8. Sewage information and if you’ll need a septic tank.
9. The cost of clearing and grading the land. It could be anywhere from $1400- $5,000+. It depends on how wooded the area is and the location as well.

Step Three: Financing Land to Build a House

Unless you have cash in hand ready to buy a lot to build a house, you’ll need to speak with a mortgage advisor to secure one of the following loan options:

Land or Lot Loan

Typically, you’ll qualify for a land or lot loan. They are different in nature, and the infrastructure and zoning will determine which one you fall under. A land loan is when it’s considered raw land, or formally known as underdeveloped. A lot loan means it’s connected to utilities or, at the very least, has been surveyed and permitted for home construction.

If the land is underdeveloped, you may need more money for the down payment as it will be seen as a riskier investment to the lender.

Construction Loans

This is typically a short-term loan of a year or less that gets your project started. Usually, a lender will require your permits, plans and budget to approve this type of loan.

Construction To Permanent Loans

A construction to permanent loan is where your construction loan turns into a typical mortgage once the house is completed after the building process. Two loans are rolled into one, which can lower your closing fees since there’s only one signing process. However, keep in mind you pay the interest on the balance during the construction phase as the total “prime rate” before it becomes a permanent mortgage where it’s fixed or variable.

Step Four: Get Ready to Build a House in Florida

Once you’re confident that the land is an excellent investment and purchase it, you can now hire the right professionals to oversee your home build. Make sure the correct permits are in place, so you’re not halted during the construction process. Once the land is clear, you’re ready to go!

Frequently Asked Questions (FAQ)

How much do you have to put down to buy land in Florida?

When you buy the land in Florida, your down payment may be different depending on your financing situation. Your loan type and lender for buying vacant land in Florida will determine if you have to put down 10% or less or even up to 50%. Typically, you could find lenders that only require 10% or less for a new construction loan. If you’re buying a lot to build on later and it’s considered raw land, this may be when the down payment requirement can be up to 50%.

Is it hard to buy land and build a house?

The step-by-step process of buying land and building a house can seem overwhelming, but it’s overall worthwhile. You get to create your own custom dream home! There is a lengthy process involved that will require a lot of attention to detail to buy land florida. With the proper research, following this guide, and asking questions, buying land for beginners doesn’t have to be hard.

Is it cheaper to buy a land and build a house?

Whether it’s cheaper to buy land and build a house depends on your location, the quality of your finishes, the current market, zoning and if the land is buildable. If you’re looking for the cheapest way to buy land and build a house, you’ll have to investigate a great area that’s up and coming with the correct permits, soil, and a team of experts to move forward.

Does Bank provide loan for land purchase?

One of the things to consider when buying land to build a house is financing. Purchasing land in florida can be more complicated than your typical home sale. The process depends on if the land is undeveloped and lacks utilities and other location and land area Florida considerations. Some of your purchasing land in Florida loan options include:

• Seller financing
• Lot land loan
• Raw land loan
• New construction loan

How do I buy land in Florida?

For a condensed version for buying land to build a house checklist, here are the steps that are typically involved:

1. Find land for sale that you’re interested in buying.
2. Get your financing in order to purchase the land.
3. Investigate the zoning restrictions to ensure that the zoning is what you intend the lot’s purpose for.
4. Hire a professional to examine the florida vacant land for sale for its suitability for building a home, including grading, soil testing, and utility access.
5. Once you find buildable land for sale, you can start getting quotes from contractors and home builders that service that area.

How to find out if land is buildable?

Buying undeveloped land comes at a risk, and buyers should be wary of the zoning and if the land in Florida they are interested in is buildable. The safest way to do this is by hiring a surveyor that will be able to report:

• The dimensions of the florida lots you’re interested in.
• Any easements or rights someone else may have to use the land.
• How accessible the land is, which is the beginning of how to tell if land is buildable.

While you find out if buying lots of land is feasible, you’ll want to be on the lookout if anything is classified as a wetland and any setbacks. A setback refers to the structure of the building and where it is located on the land compared to the property line. If you have 30-foot structure setbacks on either side and your lot is only 60 feet wide, you’ll have to keep that in mind for the size of your home. Another detail to check is if you have any view ordinances. This means that you could have a restriction to build a second storey to the house.

What is the process of buying land in Florida?

Whether you’re buying government land for sale in Florida or land for sale with water off a typical MLS site, the process is as follows:

Step 1: Browse land for sale and find the right lot.

Step 2: Find out the property details such as its zoning, utility hookups, local bylaws, town plans, environmental hazards and any possible setbacks.

Step 3: Check the cost to clear land in florida for the project you’re taking on. Most of the time, this will depend on size. Your typical land grading can be anywhere between $1.30 and $2 per square foot but varies on difficulty.

Step 4: Pick the best financing option for you. The cost of buying land is typically paid for through land or lot loan, construction loan, construction to a permanent loan or in cash.

How do I buy land without a realtor?

Buying vacant land in florida has never been easier, and you can even get money back to help with your building costs if you choose the right service. Richr helps Florida land buyers and investors with a seamless online offer process and up to 2% cashback on any purchase.

Is it worth buying land to build a house?

If you purchase land in florida with the intention to buy a house, it can be worth it if you plan and budget accordingly. Purchasing land in Florida requires investigation and asking a lot of questions to determine if the lot is suitable and land is buildable. If you’re able to determine it’s a good investment during a conditional period, that is the best way to make buying land in florida worth it.

How much land do I need to build a house?

If you were to purchase land in Florida, how much would you need? Well, it all comes down to personal preference. Do you want just enough space to build a home and a shop? Or are you looking to stroll around your property for acres without another person in sight? Do you plan on raising farm animals on your land? All of this will factor into how much space you need to build a house when you buy properties in Florida.

What does unimproved land mean?

Suppose you’re buying land with water rights, and it’s labelled as unimproved. In that case, that means it lacks services that could be anything from the severe matter of street access to utility hookups like water or electricity or even telephone.

What does undeveloped land mean?

Undeveloped land for sale Florida is also referred to as raw land. This means it is likely a vacant lot without any buildings, driveways or utilities.

Why is land so cheap in Florida?

In South Florida, land may not be so cheap as there is a scarcity of it. But for the rest of the state, there are lower prices for both land and homes because of its abundance. Orlando and Tampa have plenty of room to expand, so it may be the best place to buy land in florida.

Is buying land in Florida a good investment?

If you plan to purchase Florida land, it can be a good investment, but it depends on your intention for what to do after buying land. If you’re going to build a home and sell it, you’ll want to run the numbers closely to compare construction costs, utility hookups, etc. and the local market to see if you’ll make a profit. If you’ve always wanted to build your dream home on an average lot size in Florida, it may be worthwhile to crunch the numbers if you’ve been struggling to find the perfect place.

Summary

Have you been on the hunt to buy property in Florida, but the perfect place hasn’t come up? You should consider buying land in Florida to build a house. That way, you can create a custom masterpiece with local experts to help you make your dream a reality. To help with the cost of building on undeveloped land for sale in Florida, buy the vacant land with the help of Richr services to earn up to 2% cashback to put towards the dream build.