Land purchasing questions

[Sigarms]

</font><font color="blue" class="small">( I also used Farm Credit Services to buy my rural property, and will be "wrapping" the remaining balance I owe on it into the construction loan. They'll do it either way -- it's just that now I'll have to pay closing costs twice.

It's SO VERY nice to deal with someone who understands rural property, and their rates are competitive.... )</font>

Can't say it any better. Know my loan officer by first name, they call me when ever they see a used tractor for sale (they know I'm still looking for one), I'm invited to the company picnic every year, and they all seem like good down to earth people. Most pleasure I've ever given all my money to /forums/images/graemlins/grin.gif

Serious, not a bad moment yet in dealing with my local farm credit union.

 

[thatguy]

I think everyone here about covered the subject very well.. We bought our land using a home equity loan, which worked out better because it gets to counts as part of the down payment/equity for our new home construction..

From what I understand from talking to different bankers, banks do have a limit on the number of acres they like to finance with little hassle.. Once you get over about 15 to 20 acres it becomes farm type land (for lack of a better term) versus a home building lot and they are more hesitant to want to go there (ie more downpayment needed)

good luck

Brian

 

[theonlybull]

i just put in a bid on a peice of land, adjacent to my current property, and after talking with my bank, walked away with a nice personal line of credit... i didn't want to tie my house into the loan, and this offered as good a terms as anything.

 

[TC18guy]

Our loan was kind of interesting. We had quite a bit of equity in our old home. The bank did some kind of "bridge" loan where they took over the mortgage for the old house and didn't require us to make any payments on it for 9 months giving us plenty of time to build our new house. We then got a construction loan with the same bank, purchased the land, built the new house. We sold the old house before the 9 months were up and rolled the construction loan into a shiny new mortgage. Not having to make payments on the old house sure made the construction go easier. I don't hink we could have made both payments.

 

[deere755]

I would think the equity you would have in the land would be ok to start building a house with. After the house was finished they would do a new appraisel with the house and land and if you had 20% equity in the appraisel you would have your down payment met and would not require PMI insurance. With our house they did an appraisel after the consrtruction was finished and it was 30% higher then our mortgage so there was our down payment. Our bank required us to have PMI insurance if we did not have 20% down. Our construction loan also included the price of paying off the land. Our bank required us to have a clear title to the land to start construction.

 

[JAK]

you can do a land - home package on a manufactured home. go with a good company, not a fly by night mobile home dealer. we bought our land first, then debated on what to build. my wife and i decided on a palm harbor home. with the price per sf of a stick built house it just wasnt worth it to us. its 2400sf, we got to decide the outside elevations and colors, and did several custom upgrades to the inside. they dont have craxy rates and hidden fees. your rates and terms depend on your credit history. they have regular rates just like any other mortage company loans. we did the pier and beam foundation, which makes it a permanent structure and qualifies for a f h a loan and makes it alot better setup. $ 69,000.00, you cant go wrong on that much footage. we rolled the land and home together for 20 years at 5.85%. you do see the mobile city appear overnite and a year later they are all repoed and looks bad, these are shady dealers that put people in them that couldnt afford them anyway, stay away from them and go with a reparable mortage company and builder.