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Land Financing Options

tmule88

tmule88

Member
Hey guys. I know many of you are land owners and might offer some great advice when it comes to financing options available on land purchasing.

I am getting to the point where I have been looking pretty heavily into purchasing my first piece of ground. What can you guys tell me about your experiences with rates, down payments, banks, ect.

Any advise would be great!

Tyler
 
Stay away from wellsfargo...... My current house is through university of Iowa community credit union. I have nothing but good things to say about them. Right now is a great time to buy loan rates are very low.

You want 20% atleast to stay away from pmi being a first time purchaser though I think you can get away from pmi without a down payment.
 
Greekhawk said:
My current house is through university of Iowa community credit union. I have nothing but good things to say about them. Right now is a great time to buy loan rates are very low.
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I have little good to say about the University of Iowa Community Credit Union. They may be good for a house, but when I was a member, they wouldn't touch an ag purchase. Maybe they have changed, but I went to Hill's Bank and they won my business. :way:

Home purchase down is usually 20%, expect it to be higher for ground, maybe up to 30%.
 
tmule88 said:
Hey guys. I know many of you are land owners and might offer some great advice when it comes to financing options available on land purchasing.
Tyler
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Banks aren't the only option. Some property owners might consider a contract sale. Just make sure you run the contract by your lawyer.
 
Another vote 4 farm credit services. They have a lot of options. For example if u can pay it off n 17 years u can set your loan up for that instead of just choosing a 15 or 20 year note
 
A third vote for Farm Credit Services. I dealt with the office out of Ottumwa and they were great.
 
Farm credit is the only place I found that will give you a long term fixed rate. Banks are all five year ballons which scare me on land. FCS is great if you got the money, they are more conservative with their lending terms for sure though.
 
Just finished a deal with Farm Credit. Long term fixed rate of 4.5% I had a ton of equity in the property so I needed no money down.
 
Farm Credit is most likely your best bet, but as a banker, I hate saying that. Some banks are going longer term in house becuase of the enviroment we are in. If the land has some tillable on it, there are many banks that are in the Farmer Mac program and you can get long term fixed rate loans. Rates are at the lowest ever so if you have the means, this is the prefect time to do it.
 
If you have equity in your residence or it's paid off, consider re-mortgaging that and using cash to buy land outright. That's what worked best for me. However, if we lose the home mortgage deduction for taxes, that may not hold true... :confused:
 
tmule88 said:
Hey guys. I know many of you are land owners and might offer some great advice when it comes to financing options available on land purchasing.

I am getting to the point where I have been looking pretty heavily into purchasing my first piece of ground. What can you guys tell me about your experiences with rates, down payments, banks, ect.

Any advise would be great!

Tyler
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T mule have you ever checked bank's out side your state area?
When I say this post , I called the vice president of a bank here in our area, that I work for, and yes our land and home loan is with this banker, He does do alot of work with out of state hunters outfitter's and/ New land buyer's., I sent him an email last night, about your post, and he replied Quote"
I have no issue with financing land in Iowa. Financed 300+ acres right on the Iowa/Minnesota line just yesterday. Have him give me ring; would be more than happy to talk with him.
HIs contact info is
download
 
btt



Originally Posted by tmule88
Hey guys. I know many of you are land owners and might offer some great advice when it comes to financing options available on land purchasing.

I am getting to the point where I have been looking pretty heavily into purchasing my first piece of ground. What can you guys tell me about your experiences with rates, down payments, banks, ect.

Any advise would be great!

Tyler


In the same boat. Any other advise. Any possibilities on places that will do less than 25% down or is that pretty much a standard?
 
There is a big difference between land with house and vacant land to companies.

Vacant land obviously being the higher risk loan because its considered a luxury item as opposed to your primary residence.
 
If you're in the n ia area and prefer keeping your bank closer, the I'd recommend working with jake heimer at farmers state bank.

Sent from my iPhone using IW
 
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