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If you want a loan on land in this area, you need 20% down for a minimum. Whether that's the standard throughout the state or the US, I really don't know.
I've financed a residential lot through the local credit union. I've also researched financing a larger rural lot through Farm Credit, and have no doubt that would have been possible as well.
Thanks for the replies. I'm not sure if we're going this route but its one of our options at this point. We are trying to buy a home with at least 5 acres and there is minimal inventory here .
I am looking at lots in the $50,000-$100,000 range. Is it realistic to put 10, 20, maybe even 50% down or should I expect to pay it all upfront? I have heard it is difficult to finance land so I'm trying to work out my options.
You can definitely finance land. You will most likely have to put 20%-50% down and will probably have to go through a local lender like a community bank or a credit union. I wouldn't waste my time at a large national like Wells Fargo or Bank of America.
Sellers can act as the financer. It's quite common. We financed the sale of one parcel, and on another parcel we bought we got seller financing, with about 18 to 19% down. The interest rate might have been a bit higher than "normal" but we intend to pay it off early.
For a while here, you could get land loans through a program that was called Rural Loans or something like that. The county you wanted to buy in had to meet the standards for being rural. That must be pretty extreme because in the county I currently live in, there's land all over, but our county hasn't been considered rural in forever. Still, it might be worth a try to see if those kinds of loans exist and try to get one of them.
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