Buying land

[.44mag]

I have found 157 acres that my wife and I am very interested in and we are wanting to get approved for the loan before we even think about making a offer. We have excellent credit so that is not a problem.

My question is who do you use for the loan? I talked to our bank but hey said that with the land not having a dwelling on it we would have to pay 40% down. we have around 25000 to but down but no where near 40%. any help is appreciated.

 

[PickettSFHunter]

What do you mean by "how do you use for the loan"?

 

[.44mag]

Sorry I fixed it I meant who. Like what company.

 

[PickettSFHunter]

Ah I see. Me personally, I get 0% loans from a fairly well to do father, I have paid at least 50% down on every tract Ive bought though, so guess Im not much help. The farmers and loggers I know here that do alot of land deals usually have a banker friend that trusts them to bring in the money eventually. Certain bank/bankers in my area are known for stretching it out alittle farther for you too if they know your trustworthy. Maybe someone will have better info on the "proper" ways to do things.

 

[8 POINTS OR BETTER]

Farm Credit makes loans on land.

 

[richmanbarbeque]

Land loans are really hard to get in some cases. I recently was wanting to buy more but my bank was satisfied with 25%. I would keep looking, sometime no name banks are more help than big banks. Good luck

 

[Football Hunter]

There was a commercial running one time on some outdoor networkds about some bank that lent to hunters looking for land.Cant remember the name,maybe google around for a while.Lots of people are having trouble with a home loan right now.

 

[PickettSFHunter]

I just called my Dad about this, chief financial officer of a chain of banks with I guess 30 years now experience. He told me 40% down was very common with land w/ no dwellings and about 7% interest was common right now with real good credit. He said the reason banks want so much more down on land like this is because in that type market something that is worth a million to one person may be worth 15 cents to another.Exaggerating I know but you get the idea. Banks definitely dont want to have to try to sell the land if you dont pay, especially not in this market.

 

[Quailman]

I've worked with FCS before on several purchases, and they typically require 30% down on land purchases. You will he hard pressed to find a lending institution that won't require a substantial down payment. The only other option you will sometimes have is to put other assets up as collateral, which I don't recommend. If I'm buying land, I will make sure I have the money to do so. If not, then i won't assume that type of risk.

 

[trealtree]

E-Farmcredit.com

 

[dr]

Farm credit Services, they financed my land purchase. I used the one in Cookeville, but they have offices in many counties. I put down about %25.

 

[arkwaterfowler]

I have had very good luck with Farm Credit Services. They have an office in Springfield, TN. They required excellent credit and 25% down. They recently lowered all interest rates 0.35% because they had 45 million in cash reserves built up - who else could or would do that? I would stay away from banks right now- they are nervous and you will not get a competitive interest rate.

 

[Bayou Buck]

I used Farm Credit Sevices a few years back with 20% down on a 15 year loan. With the economy now I heard they want atleast 30 to 40% down.

 

[landman]

Farm Credit down payment usually runs 20-25% down, your credit can effect that, AG First is another one, I have clients that have used both to buy they land with. Great thing about them is you get a long term fixed rate loan, banks are now doing 3-5yrs with the interest changing at that time

PM if I can help you with contact info

 

[sc8point]

Find a smaller local bank used to working with landowners,farmers, timber owners and such. the last land I bought I used other land as colateral.The smaller local banks have more leeway in doing your deal.If the land has timber get it appraised.That may help.

 

[.44mag]

thanks guys I am going to look at the farm credit. The land we are looking at is actually two tracks that are connected one is 100 acres and the other is 57. I am wanting to buy the 100 and my inlaws want the 57. so it will not be two bad. they are wanting less then 1200per acre so it will not last long.

 

[RKenney]

You could ask Dave Ramsey, but you might not like the answer.

 

[TNlandowner]

Farm Credit Services covered my 130 acre land purchase 6 years ago. I covered that loan and they financed construction on my new home in July 2010. Even better, they just lowered all current loan interest rates in order to share success with members.

After reading other posts, I think this should answer your question. ;o)

Good luck, enjoy the opportunity!