Survivalist Forum

Advertise Here

Go Back   Survivalist Forum > Survival & Preparedness Forum > Financial Forum
Articles Chat Room Classifieds Donations Gallery Groups Links Store Survival Files



Financial Forum Economics and Precious Metals

Advertise Here
Reply
 
Thread Tools Display Modes
Old 05-23-2012, 10:01 AM
voland's Avatar
voland voland is offline
Hiker
 
Join Date: Feb 2008
Location: Texas
Posts: 668
Thanks: 137
Thanked 658 Times in 272 Posts
Default loan for undeveloped land



Advertise Here

So I've been looking around and it seems like 40 acres or so will run about 120k or so where i want the land. I talked to my bank and they are basically telling me that they will not loan any money on undeveloped land. Any ideas where I can go to get financed for something like this? I have 30% down, perfect credit history etc...

Thanks!

V
Old 05-23-2012, 10:04 AM
aramchek's Avatar
aramchek aramchek is offline
Prepared
 
Join Date: Dec 2008
Location: Minnesota
Posts: 11,169
Thanks: 1,088
Thanked 12,199 Times in 5,669 Posts
Default

You need to go to a different bank.

Quote:
Originally Posted by voland View Post
So I've been looking around and it seems like 40 acres or so will run about 120k or so where i want the land. I talked to my bank and they are basically telling me that they will not loan any money on undeveloped land. Any ideas where I can go to get financed for something like this? I have 30% down, perfect credit history etc...

Thanks!

V
The Following 2 Users Say Thank You to aramchek For This Useful Post:
Old 05-23-2012, 10:08 AM
PreppinMouse's Avatar
PreppinMouse PreppinMouse is offline
Hiker
 
Join Date: Feb 2012
Location: LowCountry S.C.
Posts: 693
Thanks: 5,466
Thanked 1,007 Times in 437 Posts
Default

We just purchased acreage as well and had a heck of a time finding a "raw land loan"
institution.

A google search of raw land loan + the city resulted in a score for us and 30% down was the minimum. Also you can try a local realtor and they should be able to give you a contact as well.

It was 8 messages left and ONE called us back. Irritating but we hung in there in order to get to "safety" in building our BOL.

Good luck, do NOT give up!
Old 05-23-2012, 10:12 AM
MattB4's Avatar
MattB4 MattB4 is offline
Baal Sheeple
 
Join Date: Jun 2011
Posts: 7,817
Thanks: 11,219
Thanked 12,894 Times in 4,938 Posts
Default

Most undeveloped land is financed by the seller. Very few banks will loan against it with some small exceptions such as you have a house going to be built on it. Even with a house loan they are reluctant to lend on greater than 10-20 Acres depending on location. My folks (long time ago) were required to buy 3 acres outright with a property contract on the rest of a large acreage in order to get a home building finance loan.

Farm land sometimes can be financed through farm lenders. Might also be a avenue to pursue.
Old 05-23-2012, 10:48 AM
Varmit's Avatar
Varmit Varmit is offline
I see a bad moon arising
 
Join Date: Dec 2008
Posts: 1,262
Thanks: 1,579
Thanked 1,746 Times in 682 Posts
Default

Had the same experience when we bought our property a couple of years ago.

Neither my local bank nor the mortgage company we used to have our home
loan with could even be bothered to return my calls once I mentioned that
I was looking for rural land loan on 40 acres. Bullet proof credit rating and
plenty of cash for a down payment, but I couldn't get the time of day out
of either one.

(My bank blowing me off ticked me off the worst. I keep plenty of money
with them. Seems like the minimum courtesy they owed me was to tell me
to go pound sand instead of just ignoring repeated requests for a response.
Maybe they don't need my money in their bank that bad after all...
But that's a fight for another day.)

Eventually just said "screw it" and bought the property with cash.
(But it was only about half the going rate of the $3,000 per acre that
the O.P. mentioned, so the $$ amount was a little easier to manage.)

Anyway -- couple of suggestions --
Put the real estate agent to work for you -- He / She is obviously
motivated to make this sale happen, so ask them to track down some
possible loan sources for you.

And I've heard that local rural banks might be more inclined to loan
the money. They understand the local economy and rural land sales
better than the more traditional residential mortgage companies and
banks.

Good luck!
Old 05-23-2012, 10:52 AM
voland's Avatar
voland voland is offline
Hiker
 
Join Date: Feb 2008
Location: Texas
Posts: 668
Thanks: 137
Thanked 658 Times in 272 Posts
Default

Thanks everyone! I'll keep looking and talk to the local banks to see what I can get.

V.
Old 05-23-2012, 12:03 PM
spameggsbaconandspam's Avatar
spameggsbaconandspam spameggsbaconandspam is offline
Hunter
 
Join Date: Dec 2011
Location: Tampa, FL
Posts: 1,962
Thanks: 2,443
Thanked 4,074 Times in 1,457 Posts
Default

Are you in an area that qualifies for USDA loans?

Many banks will not lend for unimproved land, or if they do the terms will be much different than if you bought a house. Think 3-5 year loan with 30%+ down for example.
Old 05-23-2012, 12:19 PM
Tackleberry41 Tackleberry41 is offline
Survivor
 
Join Date: Dec 2011
Location: Central Tennessee
Posts: 2,637
Thanks: 12
Thanked 2,002 Times in 1,082 Posts
Default

Land where I am here in central TN, plots of empty land are pretty much bought with cash. I called my mortgage company about refinancing our place sine we actually have equity and adding the 6 acres next to us, that was pretty much the end of the conversation.

You might talk to them about a loan to build a new home with the land included, but they might not want it to be 40 acres.
Old 05-23-2012, 08:26 PM
Skyjump136's Avatar
Skyjump136 Skyjump136 is offline
Veritas Aequitas
 
Join Date: Jul 2009
Posts: 1,950
Thanks: 746
Thanked 3,062 Times in 1,017 Posts
Default

Land loans aren't done much anymore (you're about 5 years late to that party). As mentioned before your best best is looking for "owner carry" or "owner financing available" in the description.

30% down would be a bare minimum. Most banks are going to require 50% if they even do land loans in the first place. Again, sellers may be much more lenient than banks in this respect.
Old 05-23-2012, 08:44 PM
bkcloud114 bkcloud114 is offline
Junior Member
 
Join Date: May 2012
Location: Southern Tier of NY
Posts: 134
Thanks: 173
Thanked 187 Times in 66 Posts
Default

Quote:
Originally Posted by voland View Post
So I've been looking around and it seems like 40 acres or so will run about 120k or so where i want the land. I talked to my bank and they are basically telling me that they will not loan any money on undeveloped land. Any ideas where I can go to get financed for something like this? I have 30% down, perfect credit history etc...

Thanks!

V
Very hard to find a bank that will do a loan on just land. Unless that land has some other type of value (mineral rights). Best bet would be to find a small local bank. Or as other have mentioned ask the seller if they are willing to "owner finance" or "hold the mortgage".
Old 05-24-2012, 02:09 PM
MichaelK MichaelK is offline
Recent Blog:
Trapper
 
Join Date: Aug 2011
Location: Sierra Nevada
Posts: 793
Thanks: 0
Thanked 1,025 Times in 442 Posts
Default

We had to get creative to buy our land. We wanted to get a home equity loan to fund the purchase, but didn't get one large enough to purchase the land outright. The realtor suggested a strategy that ended up working and we now own our land free and clear.

Basicly the asking price was 150k and we could only get a HELOC for 80k. What we end up doing is offering 50% down, with a five year mortgage carried by the sellor. The trick was the mortgage was yearly payments, not monthly ones. After paying the down payment, we started paying down the balance of the HELOC each month. By the end of the first year, we had more than 15k of additional equity, so we could withdraw another 15k to pay the yearly mortgage payment. We did this 5 times over the course of 5 years till the mortgage got payed off and we got title to the land.

We're still paying down the HELOC, but expect that to be paid off in the next 4 years. At that point we'll own both our 40 acres and be completely debt free.
Old 05-24-2012, 02:22 PM
goliath4407's Avatar
goliath4407 goliath4407 is offline
Recent Blog:
Hiker
 
Join Date: May 2012
Location: Central Pa.
Posts: 710
Thanks: 1,199
Thanked 448 Times in 291 Posts
Default

Some banks won't unless there is a house on it
Old 05-24-2012, 02:34 PM
Kansas Terri Kansas Terri is offline
Survivor
 
Join Date: Mar 2011
Posts: 3,579
Thanks: 2,985
Thanked 5,150 Times in 2,186 Posts
Default

Will their be a realtor involved? Because, it was the realtor who told me what bank fianced the neghboring property.
Reply

Bookmarks



Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Caching on public land or land you don't control. sarge912 Urban Survival 36 03-27-2012 11:20 PM
survival from boat to undeveloped bahamas ronbastron Wilderness Survival, Hiking and Camping Forum 31 10-15-2009 02:51 PM
FS:Land Contract On Prime Survival Land and Cabins Prepared2Surviv Disaster Preparedness General Discussion 2 03-05-2009 07:27 AM
US to become the first "Undeveloped" nation danpauselius General Discussion 5 11-15-2008 12:16 AM
Did you ever need a loan RamblinMan Controversial News and Alternative Politics 3 09-27-2008 04:07 PM


All times are GMT -5. The time now is 04:15 AM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
vBulletin Optimisation provided by vB Optimise (Pro) - vBulletin Mods & Addons Copyright © 2014 DragonByte Technologies Ltd.
Copyright Kevin Felts 2006 - 2012,
Green theme by http://www.themesbydesign.net