Buying land? What you need to know about financing.
When it comes to buying land, the rules are a bit different than those that apply to your typical home purchase. Here are a few things you need to know to be prepared to buy your own piece of paradise.
- Where do I get Financing? – We recommend Queensborough National Bank and Trust. Traditional mortgage lenders are not always set up to make loans on large acreage tracts. Sometimes credit unions are an option, but they are chartered by the federal government to make these types of loans.
- How Much Will I Need to put Down? – When buying land, the amount required for the down payment is typically higher. Instead of 5%-10%, you’ll be looking at closer to 20%.
- Is There Any Flexibility? -Sometimes, you can use a property you currently own as collateral in lieu of a down payment. If the property you’re purchasing has a good amount of timber, you could consider making a deal with your lender and a timber buyer to sell some of the timber and reduce the amount of the loan you will need. We have some timber companies we could recommend, should you like to explore this option.
- Research Your Lending Options. – Explore your options before you get serious. This allows you to know what you can look for and what you can get a loan for. This will also prepare you for what you will need in order to get the proper financing.
We are always here to help with any questions you may have on purchasing land. We have many amazing land listings on our Land Page.