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How to Use Vacant Land as Collateral for an Equity Loan. Vacant land is an asset. If you own vacant land with no liens (loans or mortgages) against it, you may be able to refinance the land to pull out equity. An equity loan would be the type of loan offered, since the loan is based on equity in the land. Since the mortgage meltdown, many higher risk loans have been eliminated.
Land loans are considered high risk since no improvement has been made to increase its value, it is easy to "walk away from" if finances get tight.
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