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Joined: Apr 2006
Posts: 26
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Joined: Apr 2006
Posts: 26 |
My Dad and I are scouting out the perfect place for a cabin and a large pond. The property we are interested is 134 Acres with a small cabin. Although my Dad has excellent credit, assets and a large income, the first bank turned him down because the bank is not interested in financing a property with that much land.
Does anyone have any advice with how to get a loan for a property that is primarily land?
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Joined: Mar 2005
Posts: 21,518 Likes: 272
Moderator Hall of Fame 2014 Lunker
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Moderator Hall of Fame 2014 Lunker
Joined: Mar 2005
Posts: 21,518 Likes: 272 |
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Joined: Apr 2004
Posts: 705
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Lunker
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I agree with ewest. I have used AgFirst in the past to finance a land purchase. They are the ones to call.
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Joined: Apr 2002
Posts: 627
Lunker
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Lunker
Joined: Apr 2002
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Best way is to finance something else the bank wants such as a house and use the procedes to buy the land. The bank does not care they are just concerned with the whats backing the loan
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Joined: Dec 2005
Posts: 66
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You have to own a home to do that, though! It's harder to buy land first, then build.
Edward A Long
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Joined: Jan 2006
Posts: 16,077 Likes: 280
Moderator Lunker
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Moderator Lunker
Joined: Jan 2006
Posts: 16,077 Likes: 280 |
It is my PERSONAL experience that a Mortgage company will get intersted if you put about 25% down.
It's not about the fish. It's about the pond. Take care of the pond and the fish will be fine. PB subscriber since before it was in color.
Without a sense of urgency, Nothing ever gets done.
Boy, if I say "sic em", you'd better look for something to bite. Sam Shelley Rancher and Farmer Muleshoe Texas 1892-1985 RIP
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Joined: Mar 2003
Posts: 65
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Posts: 65 |
The local farm credit bureau is your friend........I just bought a farm through them and it was totally painless.
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Joined: Feb 2006
Posts: 93
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Lunker
Joined: Feb 2006
Posts: 93 |
Parents used Greenstone Farm Credit Services. Doesn't look like they service New York, but you can visit their website to get ideas on different products.
Chuck
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Joined: Feb 2006
Posts: 7
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Joined: Feb 2006
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Hi Justin, My Dad helped me find 40 acres on which to build a pond and possible home later. I put 30% down, and spread the remainder over 4 large annual payments direct to the seller at 6% interest. Contract is written fair but mainly in seller's favor; if I reneg, property all goes back to him. Could you find any situations like that?
IA Daughter
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Joined: May 2004
Posts: 14,012 Likes: 291
Moderator Lunker
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Moderator Lunker
Joined: May 2004
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IAD:
That's what we call a "Land Contract," they are not uncommon around here where bank financing is difficult for one reason or another. I have heard of Land Contracts with payoff periods as long as 30 years.
"Live like you'll die tomorrow, but manage your grass like you'll live forever." -S. M. Stirling
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Joined: Mar 2005
Posts: 21,518 Likes: 272
Moderator Hall of Fame 2014 Lunker
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Moderator Hall of Fame 2014 Lunker
Joined: Mar 2005
Posts: 21,518 Likes: 272 |
Just another form of seller financing vs. using a loan from a bank or farm credit agency. Several methods of seller financing -- installment land sales contract , deed with a vendors lien retained, or deed with a mortgage or Deed of Trust back to seller.
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Joined: May 2006
Posts: 65
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Joined: May 2006
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Joined: Feb 2005
Posts: 145
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Capital Farm Credit - Simple
3/4 acre pond
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Joined: Jan 2006
Posts: 168
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Lunker
Joined: Jan 2006
Posts: 168 |
Captital Farm Credit: 979-775-0404 or Texas Ag Finance: 361-387-3534
They will want 15 to 20% down, depending on how high the buyer's credit score is.
--Kevin Mc It's not about the stomach. It's about the fish. Take care of the fish and the stomach will be fine.
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Joined: Aug 2006
Posts: 1
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Foremost, I am very appreciative of the information, sharing, and open communication on this site. I recently purchased a lot of almost 7 acres, and in time I would like to construct a pond. If anybody can recommend a contractor in the Houston/Montgomery County area I would appreciate the information. In an attempt to contribute to this great site, I want to share some financing information that hopefully could be valuable to someone. After multiple phone calls to lenders, I discovered the best competitive rates at the Houston Federal Credit Union and WoodForest Bank. Both banks serve the Texas, Montgomery County location.
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Joined: Jan 2006
Posts: 16,077 Likes: 280
Moderator Lunker
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Moderator Lunker
Joined: Jan 2006
Posts: 16,077 Likes: 280 |
Get in touch with the NRCS. They have a list of dozer operators. Check references very, very carefully.
It's not about the fish. It's about the pond. Take care of the pond and the fish will be fine. PB subscriber since before it was in color.
Without a sense of urgency, Nothing ever gets done.
Boy, if I say "sic em", you'd better look for something to bite. Sam Shelley Rancher and Farmer Muleshoe Texas 1892-1985 RIP
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Joined: Jul 2006
Posts: 63
Lunker
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Lunker
Joined: Jul 2006
Posts: 63 |
I purchase my rural land through http://www.alabamalandbank.com/. The Federal Land Bank Association of North Alabama mainly supports small farmers, rural land owners, ranch homes, and loans for timber land. You may want to check if your state has a Federal Land Bank. They do not require PMI but do require a 15% deposit at closing.
Jack 1 acre pond in N.Alabama
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Joined: Jan 2005
Posts: 469
Lunker
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Lunker
Joined: Jan 2005
Posts: 469 |
Talk to the locally owned bank.
Hey Moe, I'm trying to think but nuthin's happening!
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