Mortgage Brokers...Look here..

[_Charles_]

How hard is it to finance Land? I'm visiting family in S Georgia, this weekend, and I ran across a Beautiful 7acre tract (or 14 acres if I could afford the whole thing) for around $7000/acre. I wouldn't be building on it for a very long time, I am @ 30% DTI and have a FICO score of 640-650. I would still be under 40% DTI with the land. What are the hurdles? What do you suggest? What kind of terms are available?

Charles

[Amortized]

The lenders who offer lot/land loans are somewhat limited. A little more than half that offer them require a contruction loan in the near future through the same lender. The few who don't require construction, typically require a minimum loan amount of $50k. They are also typically due in 5-10 years, almost all offer an interest only option, rates tend to be higher for them as well, 9-12% is typical. Max LTV is typically 80 with very few going to 90% regardless of score. 620-680 is the minimum score depending on the lender. Was just trying to find a $30k lot loan last week and went through almost all my lenders. Banks may be able to offer better terms on land, not 100% sure though, can somebody else confirm or deny this?

[Just Dave]

I got a vacant land loan through GTE FCU in like 98 or 99. Our loan was for like $20k so I don't think they had a high minimum. It was a max term of 10 years and the interest rate was pretty high (I think 10%)

[Epicman]

The lenders who offer lot/land loans are somewhat limited. A little more than half that offer them require a contruction loan in the near future through the same lender. The few who don't require construction, typically require a minimum loan amount of $50k. They are also typically due in 5-10 years, almost all offer an interest only option, rates tend to be higher for them as well, 9-12% is typical. Max LTV is typically 80 with very few going to 90% regardless of score. 620-680 is the minimum score depending on the lender. Was just trying to find a $30k lot loan last week and went through almost all my lenders. Banks may be able to offer better terms on land, not 100% sure though, can somebody else confirm or deny this?

Just saw this thread but you are pretty much on the money. Land loans are quite difficult. Your best bet would be going to a bank or, like Fordified said, a FCU.

[Scott]

Ask Aharon and Steph what they think of land loans. :lol:

Best thing to do is call around to a couple of Realtors in that area and ask who they suggest. As others have said most land loans bend you over pretty good.

[Epicman]

Ask Aharon and Steph what they think of land loans. :lol:

Best thing to do is call around to a couple of Realtors in that area and ask who they suggest. As others have said most land loans bend you over pretty good.

You're lucky if they stop after bending you over. :eek: :lol:

[_Charles_]

Well, Owner financing is also available on the land, but I am uncertain of the terms. It's a beautiful 7 acres that has an access road that is about 500 feet long. The whole property is actually a Pecan Orchard, and the 'driveway' would be lined with pecan trees along both sides. If i ever built a house on it, you wouldn't be able to see it from the road. I fell in love at first site when I saw it. Hmmmm maybe another way....

Charles