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Old 07-18-2010, 03:22 PM
 
4,565 posts, read 10,658,413 times
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Anyone have any tips for a bank with good rates/terms on a land loan? I'm having trouble locating banks that do this in Maine. One bank wanted 25% down, I know I can find something better. I plan on buying the land, and then applying for a construction loan 3 months or so later. I'm just not ready to apply for the construction loan. (plans, estimates, etc.)

Any tips?
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Old 07-18-2010, 04:47 PM
 
Location: Gorham, Maine
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I have a land buying client and most of the familiar names are not lending for land purchases. One loan officer recommended a local savings bank or credit union.
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Old 07-18-2010, 06:47 PM
 
Location: Union, ME
783 posts, read 1,575,324 times
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For a local bank, I recommend Machias Savings & Loan. I've had an excellent experience with them, though not regarding a land loan.
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Old 07-18-2010, 06:57 PM
 
Location: Northern Maine
10,428 posts, read 18,686,915 times
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I agree with maureenb. However, they usually want 30% down and construction to begin within 6 months. Six months from now is January 18.
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Old 07-18-2010, 07:23 PM
 
Location: South Portland, Maine
2,356 posts, read 5,720,031 times
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Do not know what part of the state you’re doing business in but I like mechanics savings bank in auburn.

Either way staying local is the way to do it. Face to face and let them know you plan on setting some type of roots here. "if" you are going to live here offer your continued banking with them as incentive.

these things do not erase the need for fiscal responsibility by the bank but can still help the loan process move smoothly and will set up a good relationship for the future.
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Old 07-20-2010, 12:27 PM
 
Location: Bar Harbor, ME
1,920 posts, read 4,321,434 times
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Banks generally don't like to give loans for unimproved land. Mortgage companies and banks often sell their mortgage to others and bundle them, this is very hard to do with a land only loan. Its very hard to sell unless its in a resort area and they can discount it a lot. So people usually do better with a construction loan taken out at the same time as the land loan. But in the current climate, you will still need 20% down in most instances.

Beyond that, you need at least 50% down for many places. If you found one for 25% down, jump on it before they change their minds.
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Old 07-20-2010, 02:06 PM
 
111 posts, read 331,270 times
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Well here is my 2 cents...i have an account at machias saving.....never talked to anyone up there.....opened an account on line.....i just send my checks & they send me a official bank receipt....i check my funds online...excellent.....cannot ask for more than that.....very happy with them
best
jim
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Old 07-20-2010, 06:20 PM
 
Location: Union, ME
783 posts, read 1,575,324 times
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I erred in my earlier post...it's Machias Savings Bank, not Machias Savings & Loan.
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Old 07-21-2010, 03:38 PM
 
Location: Northern Maine
10,428 posts, read 18,686,915 times
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That's OK. Most of us knew what you meant.
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