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#6170599 - 02/05/16 10:05 AM question on buying land..hunitng
txhunter1010 Offline
Extreme Tracker

Registered: 11/22/10
Posts: 3776
So we are thinking about trying to find a place to buy instead of leasing a deer lease...invest our money...my question to yall is, if you have purchased land, what is the best way to go about it? Who did you finance it with? have any of yall done a loan with USDA or FSA? They seem like a good way to go possibly? Any thoughts would be much appreciated...

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#6170615 - 02/05/16 10:16 AM Re: question on buying land..hunitng [Re: txhunter1010]
Nogalus Prairie Offline
THF Celebrity

Registered: 11/22/10
Posts: 19282
Loc: Corsicana
Now is the time to buy while interest rates are low. Whatever the entity, pick the one that will approve your loan with the lowest rates.

Banks usually charge significantly higher interest for raw land than for homestead loans. So check the options you mention plus the Ag credit options.

I financed my place through a local bank because the interest rate was about the same or less than other options. But it was still higher than home loan interest rates. When home equity loans became legal in TX, I simply took out a home equity loan in an amount sufficient to pay off my farm note - which saved me a bunch.

Buying land is quite a sacrifice and commitment. But I wouldn't change a thing. It's a great investment and provides much more enjoyment than any other type of investment one can make.

Good luck to you.
_________________________
Originally Posted By: REALKILLER
That's the way I hunt don't know many that do. If a deer gets buy me I will try to run him down. Ive killed a bunch that way.



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#6170623 - 02/05/16 10:25 AM Re: question on buying land..hunitng [Re: txhunter1010]
txhunter1010 Offline
Extreme Tracker

Registered: 11/22/10
Posts: 3776
Thanks...the down payment is what I cant quit figure out how to afford that part of it!!

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#6170647 - 02/05/16 10:48 AM Re: question on buying land..hunitng [Re: txhunter1010]
TexasKC Offline
Pro Tracker

Registered: 12/30/12
Posts: 1366
Loc: Houston & Lexington, Texas
I've used Capital Farm Credit several times. You might pay just a bit more interest with them but the patronage checks more than make up for it.

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#6170730 - 02/05/16 11:48 AM Re: question on buying land..hunitng [Re: txhunter1010]
oldoak2000 Offline
Veteran Tracker

Registered: 09/16/07
Posts: 2045
Loc: Denton, TX
Originally Posted By: txhunter1010
Thanks...the down payment is what I cant quit figure out how to afford that part of it!!


LAND loan is gonna require 20% down these days. In general, higher interest rate than a home.
Tip: Look for a place that has a (old) home on it; might be able to buy as a 2nd home (way better interest rate & lower down if u got good credit and ample income) - I just pulled this off, and it's like I got a 3000sq ft 'cabin' for free (w/ the purchase of the land!)

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#6170750 - 02/05/16 12:00 PM Re: question on buying land..hunitng [Re: oldoak2000]
billybob Offline
Extreme Tracker

Registered: 02/28/10
Posts: 3502
Loc: Southlake, TX, Billy Bob Ranch...
If you are a Vet check Texas Veterans Land board. They will finance up to $125,000. I think they are 6.25% interest with 5% down. They will go 30 years. You have to be careful because if the land appraises for less you will have to come up with the difference. Only reason I say that is because on land only they do not factor in barns, trailers waterwells or electric as value added.
I used Capital Farm Credit also...think my interest was 6% for 20 yrs and 20% down. My first year I got a $550 dividend check back. Great people to work with.
_________________________
http://billybobknives.shutterfly.com

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#6170756 - 02/05/16 12:04 PM Re: question on buying land..hunitng [Re: txhunter1010]
Navasot Offline
Natty Love

Registered: 09/22/11
Posts: 25936
Loc: Normangee/Navasota TX
Make sure it has deer!
_________________________


http://www.j5tractors.com/

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#6170770 - 02/05/16 12:10 PM Re: question on buying land..hunitng [Re: Navasot]
billybob Offline
Extreme Tracker

Registered: 02/28/10
Posts: 3502
Loc: Southlake, TX, Billy Bob Ranch...
Originally Posted By: Navasot
Make sure it has deer!



Really...also it's nice to have cell phone coverage.
_________________________
http://billybobknives.shutterfly.com

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#6170789 - 02/05/16 12:22 PM Re: question on buying land..hunitng [Re: oldoak2000]
redchevy Offline
THF Celebrity

Registered: 10/25/04
Posts: 23444
Loc: Texas
Originally Posted By: oldoak2000
Originally Posted By: txhunter1010
Thanks...the down payment is what I cant quit figure out how to afford that part of it!!


LAND loan is gonna require 20% down these days. In general, higher interest rate than a home.
Tip: Look for a place that has a (old) home on it; might be able to buy as a 2nd home (way better interest rate & lower down if u got good credit and ample income) - I just pulled this off, and it's like I got a 3000sq ft 'cabin' for free (w/ the purchase of the land!)


Tried that, multiple lenders said the residence had to constitute 50% or more of the total value in order to qualify.
_________________________
It's hell eatin em live

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#6170797 - 02/05/16 12:32 PM Re: question on buying land..hunitng [Re: txhunter1010]
Navasot Offline
Natty Love

Registered: 09/22/11
Posts: 25936
Loc: Normangee/Navasota TX
mine sure didn't... there were two single wides on my place that wasn't worth 1/4 of the property... unless they had it just shown that way on paper
_________________________


http://www.j5tractors.com/

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#6170800 - 02/05/16 12:35 PM Re: question on buying land..hunitng [Re: txhunter1010]
KG68 Offline
THF Trophy Hunter

Registered: 10/14/09
Posts: 6064
Loc: Goldthwaite,Tx
Originally Posted By: txhunter1010
Thanks...the down payment is what I cant quit figure out how to afford that part of it!!



Some sellers will agree to carry a second lien on the 20% down payment amount for a few years until 1st lien holder will purchase their second lien. Sellers can get more interest for their money doing that. CD rates are pitiful.

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#6170930 - 02/05/16 02:31 PM Re: question on buying land..hunitng [Re: txhunter1010]
Featherduster Offline
THF Trophy Hunter

Registered: 06/15/10
Posts: 5588
Loc: Columbus / Garwood
Check with FSA.

I've gotten all of my farm loans through them and it has been great.

I've looked at their loans for land and although I can't remember all the details I do remember the interest being low and you could finance it for 40 years.

Doesn't hurt to see what they offer.

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#6171001 - 02/05/16 03:16 PM Re: question on buying land..hunitng [Re: txhunter1010]
Dry Fire Offline


Registered: 06/15/09
Posts: 2730
Loc: Huntsville, AL
Also, note water and electrical lines. Electric companies will only run so many poles for free from the main highway and after that it runs about $1500 a pole. Water lines can get expensive depending on the terrain and length of run. Make sure fences are in good shape. If the property is in ag exempt, then you have two years to do something to the property to keep the exemption (ag or farm). Otherwise your property taxes will increase. Our ranch, we opted for a wildlife exemption. Have to maintain stock tanks and plant X amount of acreage in food plots that can't be harvested or grazed by livestock. X amount of ranch had to remain in its natural state, etc.

Good luck. I had to sell my share of the ranch back to the LLC when I moved to Alabama. I sure do miss it.
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After Monday and Tuesday, even the calendar says W T F

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#6171618 - 02/05/16 11:22 PM Re: question on buying land..hunitng [Re: txhunter1010]
kry226 Online   content


Registered: 01/11/09
Posts: 4783
Loc: Germany
Good points so far. I financed my land through Capital Farm Credit. Put about 25% down and my interest rate is currently under 5%. Was much easier than buying a house.

But at the end of the day, if you don't have at least 20% down payment, you can just about forget about financing land unless you get owner financing.
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#6171749 - 02/06/16 07:54 AM Re: question on buying land..hunitng [Re: txhunter1010]
stxranchman Offline
Obie Juan Kenobi

Registered: 08/04/10
Posts: 52092
Get your financing in order first. Get your down payment saved up and in the bank. Then start to look for land. I went with Capital Farm Credit and got a rate under 5% on a 15 yr note. The patronage checks are really great from them. Mine was equivalent to a little over 1.5 monthly payments that I got back last year.
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