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Buying land with plans to build in future.
Posted on 10/18/21 at 11:14 pm
Posted on 10/18/21 at 11:14 pm
Is the land purchase mainly cash these days? Any loans that works? I figured there would be a combo loan of sorts for land plus construction but that may not work if I want to sit and wait to build
8
Posted on 10/19/21 at 3:26 am to HailToTheChiz
It would just be a land loan at that point. Usually requires something around 15% deposit.
Posted on 10/19/21 at 5:02 am to HailToTheChiz
Just from my few experiences, Construction loans are require a ton of details that you won't want to get involved (and probably impossible) with until you're. pretty close to build.
Stuff like approved plans, builder's contracts or at minimum, bids, insurance, etc.
That's about all I can offer you, but land should be relatively easy to borrow money against.
Good luck on your plan!
Stuff like approved plans, builder's contracts or at minimum, bids, insurance, etc.
That's about all I can offer you, but land should be relatively easy to borrow money against.
Good luck on your plan!
This post was edited on 10/19/21 at 5:03 am
Posted on 10/19/21 at 6:20 am to Grassy1
Depending on where you are looking the land market is worse than the housing in terms of competition.
Lots of people buying land in cash right now. My brother has been trying for a over a year. Made 4 offers only to have cash offers pay over asking knock him out.
Going to require at least 15% down for loan, most are 20%.
Lots of people buying land in cash right now. My brother has been trying for a over a year. Made 4 offers only to have cash offers pay over asking knock him out.
Going to require at least 15% down for loan, most are 20%.
Posted on 10/19/21 at 7:59 am to GREENHEAD22
Wow. I appreciate all the info
Posted on 10/19/21 at 9:11 am to HailToTheChiz
Purchased land earlier this year through Business First bank. It's a 5 year balloon note on a 20 year amortization at 4%.
Posted on 10/19/21 at 9:29 am to HailToTheChiz
Talk to your local banks and credit unions, many will do 10% down, some even do 100% financing on lot loans. Most I have heard of will have a ballon option after 5 years or so. Typically any equity you create in the lot translates when you go to build.
Posted on 10/19/21 at 9:36 am to HailToTheChiz
First Guaranty Bank out of Hammond will go 10% down 4.5% 15 years fixed
Posted on 10/19/21 at 9:37 am to HailToTheChiz
Idk taking a loan for land is cringe
Only greaseball developers and dudes that knocked up chicks but didn’t marry them do that
Only greaseball developers and dudes that knocked up chicks but didn’t marry them do that
Posted on 10/19/21 at 9:38 am to HailToTheChiz
As to building in the future, many banks don’t like to do construction loans on unimproved lots over 5 acres. Just something to think about if you are buying acreage
Posted on 10/19/21 at 10:43 am to bayoudude
I may just reach out to various banks and credit unions to see my options. I'm not looking at anything wild. Maybe like 5 acres to build on but I wouldn't want to build for a few years.
Posted on 10/19/21 at 11:48 am to HailToTheChiz
Just purchased 2 acre lot with CSE Federal Credit Union. Required 15% down with 3.2% fixed rate for 20 years. JD Bank also offered similar setup but with 3.5%, however had fixed rate for 3 years then balloon or refinance.
If you look around, you will find some good deals.
If you look around, you will find some good deals.
Posted on 10/19/21 at 1:05 pm to carbon
Efcu Financial does 100% financing on land loans if you meet the qualifications (credit score/income)
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