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redneck
New Orleans Saints Fan
TEXAS RANGERS FAN
Member since Dec 2003
46474 posts

Lot Loan


Any recommendations on a company to go with for a lot loan? The lot I want to purchase is in the Lake Ramsey subdivision north of Covington. I will not be building until 2 years down the road when the wife is out of nursing school and has a nice paycheck coming in

Brief personal credit history if it matters:

No major bills (truck paid off, live at dads camp)

Never taken out a loan

Always pay off 100% of CC

Never been late for a credit card or bill payment



Like I said I've never taken out a loan so any information will help. I'm starting from scratch here







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StinkBait72
USA Fan
Member since Nov 2011
877 posts

re: Lot Loan


My financials are similar and I went with First American Bank & Trust. They offer a 15 year loan with a fixed rate for the first 5 years with very low rates compared to other land loans. Like you I plan to pay off within a couple years by paying well over the minimum, but have the safety net to fall back on if things get tight for whatever reason. Got it at 4.25% back in June, and was the best rate I could find at the time for land. Currently paying 2.5x the minimum and will throw Christmas bonus + Tax return at it also.





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redneck
New Orleans Saints Fan
TEXAS RANGERS FAN
Member since Dec 2003
46474 posts

re: Lot Loan


Thanks, will look into it. I did the loan calculator on Wells Fargo and definitely plan to pay well over the minimum like you are







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Chad504boy
New Orleans Saints Fan
Five Oh Four
Member since Feb 2005
76568 posts
 Online 

re: Lot Loan


what are the values of those lots?





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yellowfin
Illinois Fan
Coastal Bar
Member since May 2006
64223 posts
 Online 

re: Lot Loan


Did they require 20% down?





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StinkBait72
USA Fan
Member since Nov 2011
877 posts

re: Lot Loan


quote:

Did they require 20% down?


The requirement was 10% down. I put down a little more and also have the cash on hand to pay it off, but didn't want to drain my savings due to the volatility of the field I work in. This may have helped get my rate down, but I don't really know how they determine these things.






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guttata
LSU Fan
prairieville
Member since Feb 2006
19848 posts

re: Lot Loan


When we bought our lot, I went through E Federal Credit Union. We went ahead and got approved for the amt we thought we would need when it was time to build. Paid down the lot for 3 or 4 yrs. needed 20% down for he lot and 20% when it came time to build. If you plan on building, make sure to get a no work affidavit. It will save you some money when it comes time to start your build.





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saderade
New Orleans Saints Fan
America's City
Member since Jul 2005
20788 posts

re: Lot Loan


6% was the going rate for a lot loan when I bought 1.5 years ago.





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StinkBait72
USA Fan
Member since Nov 2011
877 posts

re: Lot Loan


quote:

6% was the going rate for a lot loan when I bought 1.5 years ago.


E-Federal was offering me the same last May with 20% down. While I have used them in the past, it wasn't the best offer at the time.






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guttata
LSU Fan
prairieville
Member since Feb 2006
19848 posts

re: Lot Loan


I also paid 6%





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hawkeye007
LSU Fan
greenwell springs
Member since Feb 2010
1797 posts

re: Lot Loan


whitney bank guys i work for them but i dont do lot loans. we have a 15yr fixed product and depending on credit you can do as little as 20% down.





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Kreg Jennings
LSU Fan
Parts Unknown
Member since Aug 2007
1492 posts

re: Lot Loan


quote:

When we bought our lot, I went through E Federal Credit Union.


You do realize credit unions have "non-profit" status and don't pay taxes right?.....

I'm not okay with that.






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