Financing Land

[AlanB]

I am late in the game, but I had to go farm credit to get my house, it dropped out of the "third party mortgage system" that most banks use.

Getting steered to farm credit was one of the best things that has happened to me though. Even though they are not in my town, I can call and they know my name, and really help and take care of me, and do it at great rates, with a smile and a minimum of hassle.

And what you are doing, is what they deal in every day.

 

[randy41]

it will get more difficult to itemize as time goes on as congress sees the standard deduction going up=tax simplification. and also when you itemize you may have to deal with the (the following 3 letters should be avoided by those easily frightened) AMT.

 

[dmccarty]

When we bought our land we got a commercial loan. The Credit Union was useless. They where not helpfull with the construction loan. All of our bank loans are now with a big bank. We still have accounts at the CU because of convienience. The bank has been very easy and helpful. We had problems with a certain loan officer who is no longer with the company. But the bank handled the problem and our other business very well. And we have delt with several differant branches, managers, and employees. We have had very good service. Scary good sometimes since its so unexpected these days. Kinda thought a CU was supposed to act this way.... Not a big business.

At the time I did not know about the NC Farm Bureau so I did not go to them for a loan. We do have almost all of our insurance with them. The agent knows us by name. Is local and helpful.

Later,
Dan

 

[EddieWalker]

Dan,

I've also had nothing but problems with Credit Unions. They seem to have more rules and less helpfull employees. I'm trying to resolve a problem with one right now, and as soon as it's done, I'm done with them. That's the third credit union that I've been a member of, and probably the last.

Eddie

 

[CharlieTR]

Not sure about your state, but here is Texas we have Land Banks.
Each Land Bank handles only certain counties. That is likely same as the Farm Credit. They loan for all that is land and farming. Texas has some odd law about mortgage loans and regular bank won't loan for land.

 

[TimC]

I went to AG South, and sat down with the Vice president and discussed the deal. It's a go with only 15% down, 6.25% for 20 yrs, and reasonable closing costs. Thanks so much for the heads up, this is looking great!
Tim

 

[SnowRidge]

Great! That's real good news.

 

[AlanB]

Too Cool,
Sounds like my experience, the banks were having conniptions, Wanted my to post bonds, cleanup stuff, have 3 mold remediation folks ad infenum ad nauseum to give me a commercial loan. To say I was gunshy was an understatement.

I sent all the info, pictures, appraisals notes etc to Farm Credit, Gave them a day to review, and very tentatively spoke with the loan officer and just asked if he had seen the mold and if it would be a problem. He said something to the effect of "its a farmhouse, you do plan on cleaning it up don't you?"

And it just got better from there.

 

[TimC]

I figured I'd post a picture or two from my scouting trip. The property has a private road that is an easment for two other properties that cuts through the edge of the lot. The first picture is just turning up the private road onto the property.

The second picture is of the "house". Every picture of the outside looks great, but inside it's a mess, and has no indoor plumbing. I'll probably use it as a place to store materials and maybe set up a air mattress if we're going to stay the weekend up there.

The third picture is looking back towards the road at the possible view. The property is mostly directly behind me as I am taking the picture and has several homesites that are 60-80 feet vertically above the level of this picture. Should have great views!

Hopefully will have everything going in the works by the end of the week, because Lydia and I will be married Saturday and off to Costa Rica for the week!

 

[rgood]

6.25 is a good rate ! Thanks for the update - Good luck on the closing.