Acquisition Loans are used to Develop and Enhance Real Property

Acquisition loans are loans that are used to purchase property by the use of loan proceeds. They are used to develop and enhance real property. Loan to value with this type of loan is determined as to the enhanced value of the property. Terms for these types of loans will vary. It all depends on the type of business and on what is being purchased. Many of these loans are due within 1 year but 3 month extension options are available. The interest rate for these loans is fixed and you can often finance up to 75 % of the project. These loans require careful consideration before you settle on a lender.