What's the going interest rate for land loans today? (appraisal, 6%, mortgage) - Real Estate -Brokers, appraisals, development, lease, investing, relocation, apartments, houses, condos, values, mortgages, loans... - City-Data Forum

doss1 · 01-04-2010, 07:57 PM

I'm hearing 8% and a 20% downpayment. Is this right? Is 6% out of the picture now?

Brandon Hoffman · 01-04-2010, 08:53 PM

Quote:

Originally Posted by TexasNick

I'm hearing 8% and a 20% downpayment. Is this right? Is 6% out of the picture now?

This would be a better question for the mortgage forum.

Mike1306 · 01-05-2010, 04:45 AM

If you could get 8% in my area for land you better jump on it.
That is if you could get someone to lend on it.

MikeJaquish · 01-05-2010, 06:04 AM

Quote:

Originally Posted by Mike Peterson

If you could get 8% in my area for land you better jump on it.
That is if you could get someone to lend on it.

Yes. 8% with only 20% down sounds like a deal to me.

Lacerta · 01-05-2010, 09:22 AM

Quote:

Originally Posted by Mike Peterson

If you could get 8% in my area for land you better jump on it.
That is if you could get someone to lend on it.

That's the same thing I was thinking...is anyone actually still doing land loans?

evilnewbie · 01-05-2010, 09:30 AM

I don't think anyone is doing land loans (okay, almost nobody) and the interest rate is NOT 8% with 20% down... the ones I am hearing from are 10% with 50% down... if you got 8% with 20% down it must be like a 3-year Balloon loan or Owner financing and even then its still a good deal BUT if you look at it realistically, its a HORRIBLE deal... its a good deal cause its about the only loans out there but its a horrible deal cause what you are paying is literally like getting it from the behind with the banks...

beachmouse · 01-05-2010, 10:32 AM

My credit union is currently 20% down, 8.5% for 5 years, and 9% for 10 years. The catch is that you have to be buying in their 7 county service area.

DMenscha · 01-05-2010, 10:33 AM

I have a hard money lender that will go 10% with 60% down. Needless to say, nobody is beating his door down to get it.

adolpho · 01-05-2010, 10:39 AM

This is a great thread. Do we need to differentiate between raw land or farm land, and improved subdivision lots? 8% might be ok if you can avoid appraisal fees, percolation tests, surveys, etc.....

Chuckity · 01-05-2010, 12:47 PM

Geez ... forget real estate investing.

I should use our capital for lending instead.