About to buy some land..any advice?

TheGeneral

New Member
Joined
Mar 22, 2005
Location
Wilmington
Im buying 30 acres of land with no house on it. They accepted my offer and now Im shopping around to find the best deal on a loan. Most banks are only giving me options that force me to have a house built on it by a certain date. Im going to build a house on it but im going to build it myself a little along as I get the money. Does anybody know of a good lending organiztion that has some better loan options for land? Or just any general advice for a first time buyer?

Thanks guys
 
You need to look for a bank that does rural loans or loans on farmland. Most big banks or suburban banks are used to loaning on sites to be built on (residential) or tract land to be created into sites and sold off (commercial) not large tracts that are kept as land.

Not much else I can help you with there, but if you have any other questions about the deal I can try to help you.
 
I thought land was collateral in itself and figured it would be easy to get a loan? Hmmm. Interesting. Keep us posted I can't remember who I used 8 years ago when I bought my mountain property? Totally forgot after I made the last payment I guess...
 
Land is collateral in itself however, most residential and commercial loans are short term so they are 2 year, 3 year, or 5 year with either balloons after the last year of the rates go adjustable which with rates being as low as they are now, they can't do much but go up over time so an adjustable mortgage may not work well for something wanting to keep land as land long term.
 
Land by itself is usually classified as a speculative investment by the banks from what I was told.
 
So Ive decided I hate lenders. As soon as they find out how young I am and that Im still in college, nevermind the fact that I run a fairly succesful business and have a second job, they throw on this "Im much better than you and you cant possibly afford this land" attitude. My credit unions are cooler about it but they will only finance for ten years. I was told farmer's insurance company will do land loans but I dont really know any other rural type lenders to check with. Anybody know any farm freindly banks? I dont really want to dedicate it as a farm but I guess I will if thats what it takes to get financing. I know one thing though, the next place I buy Im going to save long enough to write a check for it.
 
Call my friend Sharon Whitlatch at 919-270-8060
She has been in the buisness a long time and if she can't help you she knows who can. Tell her Bill Usher sent you.
Good Luck
 
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