Financing the purchase of a large building plot – bank requirements

Buying land is a much greater risk for a bank than buying a ready-made apartment. The required down payment is higher (even 30-50%), and the bank strictly examines zoning plans. This requires freezing a large amount of cash. To maximally relieve their development budget, investors target land from the direct market. By bypassing the margin imposed by land agencies, they can allocate the entire saved amount to the massive down payment required by the bank.