Questions on buying land

[cbauga]

I hope this is OK to post in this forum. If i wanted to buy some land that has no improvements on it (houses, trailers, etc.) How long will they give me to pay the loan back? 10 years, 15 years, 20 years???? What is the norm?[/align]

[TimberCreek]

Can't help you, paid cash for mine. But do not think they go too long and you probebly have to put allot down since there is nothing for collateral other then the property.

[stevencm]

You would be better off going to talk to your bank. They deal with this all the time and will be the best source of advice. Also different banks do dusiness different ways. So your bank might have different standards of lending than what mine would.

[txhunter58]

There are many ways to do it. Most banks don't want to go over10-15 years on raw land. But it depends on how much land and what it is used for. The bigger the acreage andwhether ti has some produced income figures in to the mix. When I bought 5 acres to build a house on in the future, the "amortorized" it for a 15 year pay out, meaning that the payments I made were based on a 15 year payout, but it was a balloon in 5 years. In other words, I had to either pay it off or refinance it at the end of 5 years. however, I built a house in 2 years, and the land loan was rolled into the loan on the house, so it never made it 5 years. When I went partners on a several thousand acre ranch, they financed it for 15 years straight out. In certain cases they may go longer, but again, if you are just buying it as an investment or hunting property, and won't make any income off it, don't expect them to go really long on the years unless you are an exceptional customer.

[cbauga]

Thanks for all the replys guys!

[Lanse couche couche]

When i bought mine, they needed 20 percenton a 15 year note.

[gamespooker]

Check with your local farm credit. I just bought 14 acres of raw land on a 20 year loan.