Do You Need Private Mortgage Insurance?

Do You Need Private Mortgage Insurance?

3 Things To Investigate Before Buying A Plot Of Land

by Luke Fields

If you are in the market to purchase a plot of vacant land, you are going to want to do some investigating before you purchase the land in order to ensure that you will be able to use the land how you want to.

#1 Zoning

The very first thing that you need to do is figure out what the zoning classification of the property is. You can find out this information by calling your local planning and zoning department.

Some basic types of zoning classifications include the following:

  • Residential: You can build a home for residential use on the property.
  • Agricultural: The land needs to be used for agricultural purposes, such as the raising of crops and livestock.
  • Industrial: These are areas where multiple business are clustered together. Generally these businesses are involved in the manufacturing of certain products.
  • Commercial: Commercial areas are for businesses that focus on the buying and selling of goods by consumers, such as retail businesses, food business and financial establishments.
  • Mixed-Use: These areas generally allow a combination of different zoning types to exist side-by-side. Most often, residential and commercial zoning is allowed in mixed-use areas, although the exact type of zoning designated by mixed-use can vary by area.

By finding out the zoning classification for the property, you will have a solid idea of what you can use the property for.

#2 Usage Restrictions

Next, you need to find out from the planning and zoning department if there are any usage restrictions for the property. This is different from the zoning classification of the property.

Usage restrictions are usually set forth by the municipality's building plan for how they want property to be used in their city, regardless of who owns the property.

If you are purchasing a residential property in a neighborhood with a Home Owner's Association (HOA), the HOA has the legal authority to put restrictions on the type, style and even size of home that you build on your property.

Usage restrictions can vary greatly from one city to the next, so be sure to find out if your property has any before buying it. This will help ensure you are able to use the land as you intended.

#3 Public Utilities

Finally, make sure that you find out what public utilities you are able to access via your property. The standard public utilities include sewer, water, electric, gas and phone access. You may need to contact each of these utilities in your area individually to find out if your property has access to these city utilities as well as how much you would have to pay to establish access to each individual utility.

If the property you are interested in doesn't have access to public utilities or it would be extremely costly to establish access, this may affect the buildability of the land and your ability to secure a mortgage for it. Lack of utilities can also hamper your ability to use the land as you see fit.

Before purchasing a plot of land, make sure that you understand the zoning classification, usage restrictions and public utility access to the land. This will let you know if you will be able to use the land as you see fit. 


About Me

Do You Need Private Mortgage Insurance?

Welcome to my website. My name is Larry Silva, and I want to talk a bit about private mortgage insurance. You may have heard the term PMI mentioned when you were in the process of purchasing real estate. When I first heard my lender talking about PMI, I was very confused. It was my realtor who sat me down and explained what private mortgage insurance was and when someone is required to purchase it. He told me that PMI is not lifelong insurance; it can be cancelled when the mortgage principal balance reaches a certain point. Once it was explained to me, private mortgage insurance was no longer a mystery or a confusing concept. I would like to pass on what I learned and hope that you find it to be of value.