Buying land

Hello. I am interested in purchasing land. I mean the ol'fashion way of going to a bank and getting a loan. What kind of loan and terms did you get? Looking for approximate interest rate and what bank you used?

The few banks i called weren't interested or setup for loans on raw land. They were looking at signature loans that carry high interest rates.

Thanks

Go with someone like Capital Farm Credit. I used Capital Farm Credit for my land loan and they are great to do business with. My rate on 15 yr note was 4.8-4.9% IIRC. The patronage checks are nice and really lower your interest rates even more.

This. I too went with CFC and it was actually easier than buying a house. And you want to go with a bank that specializes in raw land as I think you'll find them to be smaller organizations with regular people and less corporate BS to deal with.

Back in 2009, we did a 20 year loan over a five year term at 5.3%. After the five years, you select a new rate, and we went to a something like a 4.5% rate. Since we've paid so much extra, the mortgage only amortized to something like seven years left on the loan, or we could have got a lower rate. But I'm fine with a lower principle. Hopefully, we'll be paid off in a couple of years.

STX and Kry, Thanks for the info..thats exactly what I was looking for!

Thanks.

Finally! Stx is right about something!

I'll third that. Also, if you're looking in the San Angelo area Central Texas Land Bank has the same format as CFC. Tell Brian rusty sent ya. It probably won't get you a better deal, but he likes to talk poo poo about me.

Good luck!

PM sent

"therancher" I appreciate you help! I will look into them.

Thanks.

Where is the land? You more than likely will have to put 20% down and tha bank will finance the rest. Sometime you can roll closing costs into the loan but just depends on the bank. Also, you should be able to lock in the rate for 3, 5, 7, and maybe 10 years depending on how strong you are financially but more than likely 5 will be standard. You readjust the rate after that period. You can probably find a 20 year amortization loan fairly easily. Good luck!

Did yalls lenders want 20% up front regardless of appraisal value?

I don't remember if they required it, but we were adamant about putting as much down as we could anyway, and we had the 20% (bye-bye, Harley) to not have to worry about PMI as well. I know they weren't too upset about us putting 20% down.

Being a landowner is such a blessing and much better than being a biker.

Txbobcat,

How is your land looking after all the rain we got this year?

Best I've seen in 15-20 years

I used Peoples bank in Rocksprings, they were alot easier to get approved with the Capital Farm Credit for me, the guy checked my credit and said your good to go basically, i got 4.5% just last year, its lower if you do a 15 rather than a 20 or 30

Yes 20%, pretty much standard

Capital farm only required 10% down if the appraisal is higher than the selling price.

That's what I was offered at local bank with a 73% LTV loan.

Another vote for CFC.

Reached out to several local banks. Their interest was higher and they only offered 10yr notes.

Best gaining investment in my portfolio!

I used Lone Star Credit, basically the same as Capital. Some geographical areas one seems to be stronger than others. Easy to work with and helpful in other areas. Have also used local banks but that was years ago, back in 80-90's. If you have a clean credit rating you should be good to go. Walk in with bad credit, couple of high dollar truck loans, pregnant wife, bad work hisory then nothing will help.

I used Capital Farm Credit as well and the approval process was very smooth. I looked at a few banks and the interest was higher.