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First time potential land buyer
Posted on 11/14/23 at 6:43 pm
Posted on 11/14/23 at 6:43 pm
Looking to buy some land in Alabama. Asking price is just under $140,000. I can put 30K down easy or stretch that to 85K if absolutely necessary and am looking to finance the rest. I am a complete noob at this. Apologize for my incompetence, but any tidbits of what I can expect regarding interest rates and the closing process would be much appreciated. It’s almost completely clear cut and hasn’t been surveyed recently, but I’m looking long-term. I’m looking to use as hunting, recreational and pass it down to my boys.
5
Posted on 11/14/23 at 7:13 pm to Shamoan
You’ll probably need at least 15% of the purchase price for the down payment, and the interest rate right now will probably be around 9%.
The closing process is similar to a house. You’ll likely need to foot the bill for the survey (a few thousand) and may need to get some of the boundaries marked. You’ll also have several thousand in additional closing costs. Find out about whether you’ll have mineral rights and factor that into your decision.
If you purchase, request a current use exemption for property taxes.
The closing process is similar to a house. You’ll likely need to foot the bill for the survey (a few thousand) and may need to get some of the boundaries marked. You’ll also have several thousand in additional closing costs. Find out about whether you’ll have mineral rights and factor that into your decision.
If you purchase, request a current use exemption for property taxes.
Posted on 11/14/23 at 7:17 pm to Yellerhammer5
I visited with a PGIM land loan guy a couple of weeks ago. He said 6-6.5%
Posted on 11/14/23 at 7:25 pm to deltafarmer
quote:
He said 6-6.5%
That’s a good rate if you can get it. I didn’t get anywhere near that good of a rate on hunting land that I bought a month ago with a good credit score and low debt ratio.
Either way, OP needs to shop around for himself to find out what the rate will be.
Posted on 11/14/23 at 7:44 pm to Yellerhammer5
Used car loans aren’t even a 9% so I doubt the land will be. I would guess 6-7%
Posted on 11/14/23 at 9:25 pm to Shamoan
Term of the loan will affect the rate. Longer will be higher.
Don’t get an adjustable. Refinance if you have to but adjustable aren’t good for you.
I used the MS land bank when I financed mine.
Don’t get an adjustable. Refinance if you have to but adjustable aren’t good for you.
I used the MS land bank when I financed mine.
This post was edited on 11/14/23 at 9:30 pm
Posted on 11/14/23 at 10:25 pm to Shamoan
If it’s clear cut and the boundaries are obvious, you may consider foregoing the survey. Estimate acreage using online tools and make sure the neighbors recognize the same lines you do. That matters the most.
Posted on 11/15/23 at 2:24 am to Shamoan
Check with Alabama Ag Credit. I bought my land through them about 4 years ago. Don't remember the rate but you get a yearly dividend check from them. It's been $300-400 a year. That makes an additional payment.
Posted on 11/15/23 at 5:39 am to deltafarmer
That’s a great rate right now. Land Bank and First South have been above 8 in LA,
Suggest splitting cost of survey if needed . Some Sellers will agree.
Both pay a rebate on interest based on their profit, close to 1% in good times.
They also sell you stock. Usually close to 1 K.
Suggest splitting cost of survey if needed . Some Sellers will agree.
Both pay a rebate on interest based on their profit, close to 1% in good times.
They also sell you stock. Usually close to 1 K.
Posted on 11/15/23 at 6:16 am to LSUCouyon
The rate was better than I thought it would be. This was for a loan amortized over 30-40 years with the rate fixed for 5 years. A loan with an annual rate adjustment was at around 8-8.5%. He said short term money is more expensive right now
Posted on 11/15/23 at 7:49 am to Shamoan
Go see or give the folks at Louisiana Land Bank a call. I have had several loans through them for not only property but equipment as well.
Posted on 11/15/23 at 8:27 am to turkish
If the deed has M&B, you might be able to find someone to plot it in Autocad and overlay it with a Google Earth aerial. Some counties may have a GIS map with an aerial map as a layer... would likely be in the appraisal district website. One or the other may be enough for you to print it and walk the land to see if corners are already monumented. If the deed lists few to no easements in the back of the document you might be able to forgo a survey for now, and have one later if you build. If it were me, I'd put the minimum down to purchase and use some of the money left to get a ALTA survey with access points identified. Knowing where your access is, and whether anyone else has access over the land, is very important.
Posted on 11/15/23 at 8:27 am to BennyBaRoo
If you plan on selling trees, you might eventually look into an FSA/USDA loan. They give up to 600k for land ownership and they have an operations loan service as well.
The trick is that you’ve got to be a registered farm for at least three years to get the big loans.
No down payment
40 year fixed
The trick is that you’ve got to be a registered farm for at least three years to get the big loans.
No down payment
40 year fixed
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