Recreational Land Loan: Anyone done this before?

[rbeau30]

So, I am going to go look at 35 acres that I think I might be pretty serious about getting. I want a place 2 is hours away where we can get to in a weekend and do camping.

I found a place I think I like ($45K), and rather than writing a check and ALL of my savings be drained, I think I want to explore financing it and paying it off quickly. While keeping my savings and rainy day fund where it is. I have great credit and the means to pay/sizeable down payment so that will not be a problem.

Anyone financed raw land before? Recommend a company?

[XC700116]

Last time I looked into it, my local credit union had the best rates and most trouble free process. I'd start there.

[rbeau30]

Last time I looked into it, my local credit union had the best rates and most trouble free process. I'd start there.

I don't have a Local bank and my current bank is no help. I may have to join one.

[davsel]

My finance lady said to try a bank or credit union that is local to the area you are purchasing.

[Wulf202]

Join one.

Easier with a construction loan. But definitely doable with a good down and debt to income.

[mtnrider]

My finance lady said to try a bank or credit union that is local to the area you are purchasing.

^ This. I ran into a similar situation in the past. A local bank or lender will know the in's and out's of financing property in the local area.

[Great-Kazoo]

Is the land in question accessible, or does it require right of way ? If purchased where is water and power?

[rbeau30]

Is the land in question accessible, or does it require right of way ? If purchased where is water and power?

No water (except for seasonal dry creek) and power I am going to find out when I visit how far away it is. Land is accessible from opposite sides via nice gravel road.

[asmo]

I am in the middle of a land loan (for 10 acres) right now.. I have a banker that has been really good to work with. Let me know if you want his name.

That said - every bank/broker I spoke with said that land loans are the ones they have the most trouble with. For lots over 20 acres its going to be darn near impossible to find a lender in CO that will let you borrow without 60% (yes 60%) down (I have a whole long list of brokers/banks/credit unions that I tried). I know of a person outside of CO that will do it for 20% down but he is a little bit flakey. Most all of them are doing 3/1 or 5/1 on lots. Most everyone said to just do a 3/1 construction loan and then refi it under any equity you have in your existing home (if any). Its easier for them to write a construction loan than a lot loan. A couple of the banks I talked to said they were getting out of the land loans all toghether and are either selling off the notes or strongly enouraging their existing borrowers to sell. On more than one occasion I had the broker at a bank/CU offer to send me a list of lots they had and wanted to get rid of.

One thing that I found odd was even on lots where you have no intention to build several of the lenders still want soil and percolation tests done.

[T-Giv]

Glad I saw this thread....wife and I are looking at property now for a build. Obviously different with a construction loan but I'm still trying to work out the best way to go about getting that done.