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Old 10-11-2007, 08:42 AM
 
Location: WI
436 posts, read 1,634,917 times
Reputation: 482

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Hello, I'm hoping someone can help answer a few questions about getting a loan for land. Husband and I would like to buy land in Wyoming and we live in Wisconsin (guess we like states that start with 'W'). We plan on moving to WY but need to sell our house first. Since there is a piece of land we want to purchase but can't build until current home is sold, we'd like to still purchase the land. Our housing market is terrible in our area right now!

Our credit union won't do loans for out of state property. How do I go about finding places that will loan the money? When I look online it appears that for land I'd need 30% or more down and the interest rates are higher. It wouldn't be difficult to come up with 10% down but 30% or more isn't much of an option unless I take a home equity loan - which still increases my debt to equity. Why so much down required?

Do I look for lender in WY or WI?

Our credit score was something like 749, is that good?

I'll be keeping my job when we move so I'd have 20 yr work history at the same employer if that means anything.

Thanks for any info.

Deanna
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Old 10-11-2007, 11:37 AM
 
4,983 posts, read 12,670,285 times
Reputation: 3786
Try Ag Star in Wisconsin. You might be able to get 10% down. Raw land is less marketable, not your primary residence (quicker to walk away from) and harder to value than residential housing, so they require more down payment.

Here at my bank (conservative) we require 40% or 50% down.
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Old 12-17-2008, 11:52 AM
 
1 posts, read 23,127 times
Reputation: 12
Are there loans available for debt consolidation. Using your land as collateral, I don;t own anything on the land. The land is located in Pennsylvania and I live in Delaware. Planning on moving there in a few years. I am just wanting to do a debt consolidation to get my monthly out going exspence down. Do you have any suggestion on which way to go and which banks to contact? Thanks for your time. Mandy
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Old 12-17-2008, 12:01 PM
 
242 posts, read 685,738 times
Reputation: 192
most lenders I know will only do 50% down.
However, many deep rural areas have one or two guys that own most of that land and do their own 'lending' to buyers with little down.

As an aside, I highly suggest waiting on land. It was the last to boom as it is the least desirable and the multitude of land for sale by owners in trouble will steadily lower that price to a very low amount over the next year or two.

If you buy raw land now, you are going to be upside down on something that rarely, baring booms or development of the area, ever go up in value.

just wait it out.
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Old 12-17-2008, 02:33 PM
 
20,194 posts, read 21,516,632 times
Reputation: 9233
I am buying land too! I know what you are talking about... the problem is that MOST lenders will not lend for land and that leaves you between a loan shark and another loan shark... If you are buying land, I would find whatever is the nearest city and locate some CREDIT UNIONS (not banks) as they often have better terms and interest rates (as well as better banks in my opinion)... good luck... I don't understand why someone would say don't buy land... it isn't about "value"... its more about "home"... I don't buy land so that I can get money out of it... I want to make a home out of it... if it appreciates in value, that would suck as I HATE paying more property taxes...
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Old 12-17-2008, 09:08 PM
 
Location: Great State of Texas
86,068 posts, read 76,658,613 times
Reputation: 27647
Try the Farm Credit Bank if you can qualify (land use that is)..they have several types of loans depending on what you plan to do with the land.

Each state has their own bank:
The Farm Credit System
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