# how to get financing for land



## freedomfrom4 (Jul 27, 2009)

There is an awesome place that I would like to try and get financing for. The fella is old and doesn't want to do owner financing. He has offered it to me for 15,000 less then what pva appraised it for if I can get financing. He said others have tried but the house isn't worth anything and the bank wants 45% of the value in the home. It's an old mobile home. There is a barn and 20 acres that has the value and is close to a big town (400,000+).
So how do I get someone to loan me money? I'm gonna call department of ag tomorrow. Any other ideas?


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## goatlady (May 31, 2002)

It's been my experience as a realtor and a loan officer that in the last 5+ years or more banks are EXTREMELY wary of lending $$ on basically bare land and really for any property purchases, no matter the appraisal because the values of property are sooo volitile in today's market place, and what has enough value today to secure a loan, tomorrow may lose 50% of that value. The gentleman either does not understand that marketplace trend or he really does not want to sell quckly/badly. I can understand him wanting to receive all his $$ at the time of sale rather than take payments, BUT monthly payments in hand is far better than nothing in hand and monthly payments would most likely save him income tax $$. Good luck on your search for financing.


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## WJMartin (Nov 2, 2011)

My DS just bought a house & 2.5 acres for $140,000 financed through the USDA for 1% interest. He could have built new, bought in town or country. He bought the place right across the road from us because it was more house than he would have gotten if he had built new. He did not have to be a first time home buyer but there were other criteria and it just so happened that he fit what they were looking for. Good luck in your search for financing.


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## chewie (Jun 9, 2008)

try farm credit too. when we had a real mess getting a mortgage due to our place not being 'conventional', they took us without a second glance. 

do you have plans to upgrade the home? sometimes you can get say a half acre apprasied with a new home, then add the other on as a second loan. combine them later.


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## freedomfrom4 (Jul 27, 2009)

Hey farm credit was nice. They will finance it for 75% of the value which is something like 63,000. I would have to put $7000 down. Not bad. Only thing is I'm in the middle of a divorce. I'm gonna see if I can get someone else to get the loan and I make payments that way it isn't in the middle of my divorce.


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## NorthCountryWd (Oct 17, 2008)

You used to need a solid business plan for USDA loans, but things have changed in recent years so you may want to check into it.


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## edcopp (Oct 9, 2004)

freedomfrom4 said:


> There is an awesome place that I would like to try and get financing for. The fella is old and doesn't want to do owner financing. He has offered it to me for 15,000 less then what pva appraised it for if I can get financing. He said others have tried but the house isn't worth anything and the bank wants 45% of the value in the home. It's an old mobile home. There is a barn and 20 acres that has the value and is close to a big town (400,000+).
> So how do I get someone to loan me money? I'm gonna call department of ag tomorrow. Any other ideas?


The only logical lender in this case is the seller. He wants all cash (they all do). It is obvious that the property is overpriced for the market, So when he really gets ready to sell the property he will finance the deal for you, very likely with a small down payment or no down payment at all.

Untl then he will live in dream land.


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## blufford (Nov 23, 2004)

There are always (wealthy) private individuals in communties who will buy and hold the note on real estate. The interest rate is usually a little higher than a bank might charge. *A busy lawyer usually knows the people who do financing like this*. You would want to have your own good lawyer to make or examine the contract.


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## Pony (Jan 6, 2003)

Is Farm Credit a state entity? Hmm...


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## solar (Feb 11, 2010)

edcopp said:


> The only logical lender in this case is the seller. He wants all cash (they all do).


I have bought a couple parcels of land from sellers who didn't want to carry the note. I offered 30% down with the owner carrying for 2 years (balloon note). Sellers often accept balloon note deals because they get either the balance or the land back in a couple years.

Although it worked great for me, be forewarned that you can get in a bind when the note comes due if you don't have the payoff.


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## homemom1fl (Nov 28, 2004)

Pony: Farm Credit Services is all over the country.


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## Pony (Jan 6, 2003)

homemom1fl said:


> Pony: Farm Credit Services is all over the country.


Thanks!

Is the link you posted earlier defunct?


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