How to get a loan for land
loan for land were to start?
Post by: Fishon McCoy,
on Nov 01, 2010 15:11:24
Loan for land/construction loan. I have spent 4 Hrs today calling banks to look into what I
Could get approved for, Wow what a black hole. The banks in my area only give loans for property
with a pre existing house on it, Bank of America and wells-Fargo, seemed to be saying they wont
give me a loan for the land until I own the land I need the load for in order to buy. Then they would only
lend me 55% of the value of the land after the appraisal and I have 5 years to build a home. I live in MD
and I am looking at land in Mineral County West Virginia. How did you get pre approved for land and home construction?
With what bank did you do this and do you recommend or not recommend them. I am looking at 30-50 acres of land
to raise a small amount of livestock, build an alternative house (probably shipping containers) build a pond, hunt and for recreation.
Mineral County is near where I work Cumberland MD so thats why I am locked into that.
Post by: hobbssamuelj Hatfield,
on Nov 01, 2010 17:08:34
how much land are you looking to buy? in michigan you can buy for under $1000 per acre. you may not have to take out a loan if you can save up a few thousand bucks.
Post by: Paula Edwards,
on Nov 01, 2010 18:08:08
I am not American so I can't help you with that, BUT: I would consider buying land with a house on
it. Why? First even your eco friendly house will have much more environmental impact than if you use one of the existing homes (and America really seems to be awash in houses so why concrete even more landscape?).
Second you simply move in and then you might change the one or the other thing. But if you build a house (and you don't save much money if you do it yourself) you have double costs for a year or so, you rent a house while you built the other.
Third my guess is that you get your loan much easier, because the banks see the above problem as well. And a house with land is always cheaper than buying land and building a brand new house.
Fourth: if you build a house you have so much to think of that you have no time to develop your land and that's what it's all about, worse if you built yourself. The land should be the focus and that's more than enough work.
The times are not really very good and the next financial crisis might be around the corner. I would buy something you really can afford inhabitable house and land and start straight away to work the land.
Bear in mind what would happen if you loose your job.
Post by: Tyler Ludens, pollinator
on Nov 02, 2010 04:33:31
Personally, I think it's foolish to buy land on a mortgage unless you intend to make your living there. If the bank will only give you 55%, then in my opinion you should scrape up the cash for the rest. Taking out a large mortgage for a recreation property is just not a prudent financial move, in my opinion.Source: www.permies.com