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Started By
Message
Information on Financing Land
Posted on 9/22/21 at 9:36 am
Posted on 9/22/21 at 9:36 am
My dad and I have been looking for the right property for about a year now and finally found one worth going after. Does anyone have any recommendations on who to use as a lender? Possibly any tips or tricks? It’s about 250 acres with a large metal building on it. We plan to put down 50% LTV and I will finance the rest for 30 years as it would be passed to me after he passes.
Thanks and cheers.
Thanks and cheers.
10
Posted on 9/22/21 at 9:41 am to Hunter6868
At 50% down LTV, you will have your choice...they will be chasing you!
Good Luck, land ownership is a great thing!
Good Luck, land ownership is a great thing!
Posted on 9/22/21 at 9:42 am to Hunter6868
I financed my property through my local bank. Putting 50% down you're not going to have any issues financing.
Posted on 9/22/21 at 9:43 am to Hunter6868
Louisiana Land Bank
Posted on 9/22/21 at 9:43 am to Hunter6868
First South Farm credit, ask to speak to Ashley McDaniel...she knows this shite frontwards and backwards, she will walk you through the process, and she is Johnny on the spot with everything
Your interest rates will be higher than a home mortgage, probably in the 5% range for 30 years
You will need a larger down payment than a home mortgage, but as you stated previously you are planning to put down 50%
Your interest rates will be higher than a home mortgage, probably in the 5% range for 30 years
You will need a larger down payment than a home mortgage, but as you stated previously you are planning to put down 50%
Posted on 9/22/21 at 10:23 am to LSUA 75
quote:
Louisiana Land Bank
they give 1% back every year
either look at them or another ag bank for whatever state you’re in- you’ll get better rates. No idea why, some kind of preferred rate they get from the government I guess for dealing with farms.
Posted on 9/22/21 at 10:31 am to Hunter6868
Never purchased anything that large, but when I did just a couple acres, 10 years was the max for financing. Not that I was looking for longer, that's just what they told me. Maybe since there is a dwelling, they may adjust. But putting 50% is a BIG help. Good luck.
Posted on 9/22/21 at 10:36 am to Hunter6868
I just went through this last month.
I put down 2/3rds and financed the balance for 15yrs.
I went through Mississippi Land Bank. It's part of the Federal Farm Credit Bank, US agency. My rate was 4.55% but going through them you have to buy a share of the co-op which was $1000 (not sure if that is a percentage of the loan or not). With that said, the co-op pays out a dividend pretty much every year. That amount can vary, but I don't remember the amount they told me that was paid last year.
I put down 2/3rds and financed the balance for 15yrs.
I went through Mississippi Land Bank. It's part of the Federal Farm Credit Bank, US agency. My rate was 4.55% but going through them you have to buy a share of the co-op which was $1000 (not sure if that is a percentage of the loan or not). With that said, the co-op pays out a dividend pretty much every year. That amount can vary, but I don't remember the amount they told me that was paid last year.
Posted on 9/22/21 at 10:57 am to bbvdd
My most recent was 5% for 15 through credit union.
Similar ltv.
I honestly just needed the loan for a year so I wasn't too concerned.
Similar ltv.
I honestly just needed the loan for a year so I wasn't too concerned.
Posted on 9/22/21 at 11:29 am to Hunter6868
Louisiana Land Bank is the answer.
I am currently at 3.79% on a 20 year note. Plus, you get 1%+ back each year as a patronage. Hard to worry about paying it off early with that rate and the check back.
You do have to buy $1,000 worth of stock at the time of the loan but you get that back when you payoff the loan.
I am currently at 3.79% on a 20 year note. Plus, you get 1%+ back each year as a patronage. Hard to worry about paying it off early with that rate and the check back.
You do have to buy $1,000 worth of stock at the time of the loan but you get that back when you payoff the loan.
Posted on 9/22/21 at 11:35 am to Hunter6868
Congrats, what area of the state you buying in?
Posted on 9/22/21 at 1:59 pm to TigerDeacon
What percentage did they require you to put down if you don't mind me asking?
Posted on 9/22/21 at 3:23 pm to GREENHEAD22
Mississippi, yazoo county.
Posted on 9/22/21 at 3:39 pm to Stitches
quote:
What percentage did they require you to put down if you don't mind me asking?
I think we may have put 20% down but I am not sure if that was a requirement.
Posted on 9/22/21 at 10:04 pm to Stitches
quote:With First South Farm Credit you can put down only 15% if the land appraises out within range.
What percentage did they require you to put down if you don't mind me asking?
Posted on 9/22/21 at 10:20 pm to Hunter6868
Louisiana Land Bank. Also if your dad is 70 or younger look into putting it in his name and adding credit insurance. If he passes away before the land is paid off, the insurance pays it off immediately.
Posted on 9/23/21 at 7:36 am to Hunter6868
Great dirt. Probably $3,000+ per acre. Hope y’all get it.
Posted on 9/23/21 at 8:05 am to samson73103
quote:
Louisiana Land Bank. Also if your dad is 70 or younger look into putting it in his name and adding credit insurance. If he passes away before the land is paid off, the insurance pays it off immediately.
Just me but I would rather have it in my name so when if he dies first I won't have to do anything. No hassle, not taxes.
Posted on 9/23/21 at 12:43 pm to Hunter6868
Call the First South Farm Credit Ridgeland, MS branch at 601-898-8540. They service Yazoo County, Ms.
Posted on 9/23/21 at 2:12 pm to Hunter6868
I used Southern Ag Credit out of Brookhaven I believe, 30 years at 3.8 I think. Also had to buy in for $1K, get yearly returns that are on average a couple notes per year. Was the best deal I found after checking with a couple different places.
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