There is a 1 acre lot near me that I would like to purchase, but not ready to build until 2019 or 2020. Is it possible to purchase with little money down or are banks reluctant to loan on raw land?

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Posted by yellowfin

Coastal Bar

Member since May 2006

97615 posts

Posted on 1/1/18 at 11:25 am to LSUSUPERSTAR

Yes try MidSouth Bank

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Posted by MamouTiger65

Baton Rouge, La

Member since Oct 2007

794 posts

Posted on 1/1/18 at 1:35 pm to LSUSUPERSTAR

Will probably need 10% at most places.

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Posted by LSUtigerME

Walker, LA

Member since Oct 2012

3789 posts

Posted on 1/1/18 at 2:38 pm to MamouTiger65

I purchased my land with 0% down. Neighbors FCU.

Peoples Bank offered 5% down.

You can also purchase with an interest only loan if you will convert to a construction loan within one year.

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Posted by yellowfin

Coastal Bar

Member since May 2006

97615 posts

Posted on 1/1/18 at 2:39 pm to MamouTiger65

Zero with MidSouth and interest only payments for 2 years

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Posted by LSUSUPERSTAR

Member since Jan 2005

16305 posts

Posted on 1/1/18 at 2:41 pm to yellowfin

Thx guys, I'll start looking into it tomorrow.

What interest rate would an interest only loan start at?

This post was edited on 1/1/18 at 2:44 pm

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Posted by yellowfin

Coastal Bar

Member since May 2006

97615 posts

Posted on 1/1/18 at 3:43 pm to LSUSUPERSTAR

When I did it they had 4.25%

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Posted by cave canem

pullarius dominus

Member since Oct 2012

12186 posts

Posted on 1/1/18 at 6:45 pm to LSUSUPERSTAR

With the proper credit and a good relationship with your lender you can buy anything on earth 0% down, there are no laws governing this.

Likely much simpler to just do a personal loan for a 1 acre lot than a mortgage though, way less paperwork. JMHO

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