Vacant land basics
Thought I’d put a few things to remember when buying vacant land today. Most folks who are looking for land have an idea that the only way to buy vacant land is either to have a pocket full of cash, or to buy on a land contract. Actually there are many banks out there that will finance vacant land and a few who specialize in vacant land purchases. You do however need to remember that most if not all banks are going to require 15% or more as a down payment. This is not much different than most land contract options that are offered by land sellers.
Secondly, if you’re looking into financing vacant land thru a bank, be absolutely sure they know it’s VACANT LAND, not a repo, or a conventional home loan. More than one of my clients have found out the hard way that those great zero or low down financing options due not apply to vacant lands. They go thru all the paperwork, get quotes on payments etc, then suddenly the whole thing comes crashing down when the bank realizes there’s no home involved in the purchase. Save yourself the heart break and headaches and go to a bank that specializes in VACANT LAND. You’ll get the right info right from the start.
Lastly, be sure to look into all the financing programs offered by the bank. There are some banks currently offering up to 30 year financing at fixed rates. That can be great news when you’re trying to fit in as much land as you can into your budget. If you’re in need of some contact info involving vacant land financing, pick up a Woods n Waters News magazine and peruse the realestate section, there are usually a few who can be found there. As always, if you have questions please feel free to give me a shout.
Posted: January 7th, 2010.