Land Loans and fianacing

[ovrszd]

Thanks for the update. I'm really interested in posts like this. Great, honest example of real estate values in other parts of the country. My Son and DIL are getting ready to sell 5 acres, 1,500 sqft earth contact home with attached one car garage on shoreline of 100 acre lake. When they get an appraisal and move forward with the sale I'll post details.

 

[Kira]

Good topic. It is great to learn from the experience of others. I should say, a lot of people have to take out loans to start farming. I want to add that a loan payments calculator can come in handy. When we were getting a loan, it helped us to evaluate loan term, optimal interest rate, and our own capabilities. I hope it will be useful for you. Maybe it will be useful for someone else.

 

[deezler]

If you're lucky enough to live in Michigan or northern Wisconsin, Greenstone farm credit is simply amazing to work with on land loans.

When I bought my vacant 19 acres, conventional national banks didn't want to help. Local banks did, but only by acting as a middle man via Greenstone farm credit. So I basically had one choice. Greenstone only required 20% down, and their rates are just about a 0.5% above the national averages. You have to pay $1000 fee to join the co-op, but then they pay you back a patronage check every year based on their profits. They gave back something like $80 million dollars to their members last year alone. You can look at it like a shared profit, or just like effectively lowering your interest rate. They were right there for my house construction loan and then converted into a standard mortgage thereafter. Now my effective interest rate is under 3%.

Vacant land loans don't have to be expensive or cumbersome, just need a bank that knows what they are doing.

 

[ovrszd]

Good topic. It is great to learn from the experience of others. I should say, a lot of people have to take out loans to start farming. I want to add that a loan payments calculator can come in handy. When we were getting a loan, it helped us to evaluate loan term, optimal interest rate, and our own capabilities. I hope it will be useful for you. Maybe it will be useful for someone else.

I think the one I use is "BankRate". Regardless, very handy tool. Quickly can discover required payments on a loan.