Hunting land financing

[MandRroofing]

Hey everyone,i want purchase ground in Kentucky and needing financing to do so.does anyone have experience with this.my bank wants 50% down.i just caint do that...any experience here on this? Thanks!

 

[Ohiosam]

Farm Credit is usually easier to work with on land purchases. https://e-farmcredit.com/home

 

[bowhunter1023]

Sounds like you need a new bank. Especially if you've been a long standing, loyal customer. My dad pulled all his money over a situation just like this. 50% is insane...

 

[MandRroofing]

Thanks guys ill let ya know how it goes.

 

[MK111]

A 2nd mortgage on your residence is the easiest way if no other course. I ran into the same problem when I bought my farm back in 1991. The build craze was going on and the banks were afraid of land purchases.

 

[Spencie]

Farm credit is your best option. Still 30% down.

 

[Milo]

Farm credit is your best option. Still 30% down.

Did they up it? When we bought ours it was only 20...

 

[Spencie]

Did they up it? When we bought ours it was only 20...

We had to have 30% down....or maybe dad just put that much down.

 

[Beentown]

Standard is 30% for straight land.

 

[5Cent]

I have seen 25%-50% as normal these days for land only.

 

[hickslawns]

Standard is 30% for straight land.

They wanted 25% for the last two rental properties we bought. No exceptions. The appraisal didn't affect it. If appraised at $100k, and bought for $50k. . . they still want $12.5k down plus closing costs. It is more about redtape and regulation than bank policy. Govt got their hands in it. Unsure on land but if they want 25% on properties bringing in enough revenue to more than pay for themselves, I really wouldn't be surprised at 50% on straight land.

 

[Ohiosam]

Vacant land and rentals are higher risk loans. Too easy to walk away if things get tough compared to your home.

 

[at1010]

We bought our farm with a home on it. It has running water, gas, etc. it was 30% down.