indy82z Posted June 15, 2013 Report Share Posted June 15, 2013 I was thinking of purchasing some land and had some questions about possible financing. 1) Can you even finance? 2) If so, how is the approximate down payment required? 3) Are the terms the same as a regular mortgage? I am sure we could pay for the property in full, but even at 15 years, the payment would be super cheap and thought maybe it would be better to mortgage and keep cash for when we decide to build on it in 3-4 years. Thanks Quote Link to comment Share on other sites More sharing options...
Sledhead36 Posted June 15, 2013 Report Share Posted June 15, 2013 I am sure you can, but banks are really nervous these days. I would guess they would want 25% down, but I would shop it around. Quote Link to comment Share on other sites More sharing options...
LJ Posted June 15, 2013 Report Share Posted June 15, 2013 What is the current zoning and use? If ag you can get a farm loan Quote Link to comment Share on other sites More sharing options...
John Bruh Posted June 15, 2013 Report Share Posted June 15, 2013 My bank wanted like 35-40% down I believe. Finance term was 10yrs Quote Link to comment Share on other sites More sharing options...
LJ Posted June 15, 2013 Report Share Posted June 15, 2013 My bank wanted like 35-40% down I believe. Finance term was 10yrs You can refi the whole thing when u build on it though Quote Link to comment Share on other sites More sharing options...
AngryBMW Posted June 15, 2013 Report Share Posted June 15, 2013 I was thinking of purchasing some land and had some questions about possible financing. 1) Can you even finance? 2) If so, how is the approximate down payment required? 3) Are the terms the same as a regular mortgage? I am sure we could pay for the property in full, but even at 15 years, the payment would be super cheap and thought maybe it would be better to mortgage and keep cash for when we decide to build on it in 3-4 years. Thanks Yes, you can finance a 'lot loan'. They are a little bit tricky in todays economy so be forwarned that you will have a few hoops to jump through. We typically require 20% down but have seen 25% down. Completely dependent on the individual situation and DTI. Depending on how you structure the deal, it can be the same as a conventional fixed mortgage but sometimes an ARM makes more sense. I would be happy to discuss the different options with you in detail. Feel free to give me a call at your convenience. 614-339-1206. -Marc PS - I'm a Senior Mortgage Consultant at Union Savings Bank Quote Link to comment Share on other sites More sharing options...
Akula Posted June 16, 2013 Report Share Posted June 16, 2013 Are you just buying land or do you want to build on it later? Quote Link to comment Share on other sites More sharing options...
RS69 Posted June 16, 2013 Report Share Posted June 16, 2013 Do u have a line of credit on your existing home? Quote Link to comment Share on other sites More sharing options...
indy82z Posted June 16, 2013 Author Report Share Posted June 16, 2013 We are looking at buying some land way down south. We plan on building in it, but not for 3-4 years as I want to wait until my son turns 18 to lay out any more cash. We would like to find about 5-6 acres and just want to build a small get away cabin for the wife and myself. My hope would be to get it paid off by then (if financing was possible). No lines of credit on my existing mortgage. Quote Link to comment Share on other sites More sharing options...
LPFSTheFett Posted June 17, 2013 Report Share Posted June 17, 2013 I've been looking at buying a hunting property for quite sometime. Generally what I've seen is banks wanting 20-40% down and I've seen terms up to 20 years. Good Luck and if you pick it up and have a major deer problem, let me know I can help. Quote Link to comment Share on other sites More sharing options...
Nicklz Posted June 17, 2013 Report Share Posted June 17, 2013 If you don't already have your eye on a certain piece... You can find land contracts, or deed of trusts. (basically like a mortgage, you get property usage rights immediately and make arranged payments directly to former landowner until contract is satisfied then a deed giving you full ownership is executed/recorded) Also consider natural gas rights for rural land purchases. Quote Link to comment Share on other sites More sharing options...
indy82z Posted June 18, 2013 Author Report Share Posted June 18, 2013 If you don't already have your eye on a certain piece... You can find land contracts, or deed of trusts. (basically like a mortgage, you get property usage rights immediately and make arranged payments directly to former landowner until contract is satisfied then a deed giving you full ownership is executed/recorded) Also consider natural gas rights for rural land purchases. I dont have anything picked out, but that sounds like what I am looking for. Are there any websites that specialize in these types of properties? What are the natural gas rights deal? Never heard of that..guess I need to do more research before I do anything. I guess it is a good thing that I am in no hurry for this.. Thanks again for everyones help.. Quote Link to comment Share on other sites More sharing options...
Nicklz Posted June 18, 2013 Report Share Posted June 18, 2013 I dont have anything picked out, but that sounds like what I am looking for. Are there any websites that specialize in these types of properties? What are the natural gas rights deal? Never heard of that..guess I need to do more research before I do anything. I guess it is a good thing that I am in no hurry for this.. Thanks again for everyones help.. Websites for landcontracts, not to my knowledge. Other than going through MLS listings(some realestate agents websites enable you to view all mls listed properties), or use a real estate agent, or you looking through craigslist even to find them. Lookup "utica and marcellus" these are different shale gas plays currently in eastern parts of OH, most all of WV, and western PA. see map Different areas see different production numbers, and types of gases vary also on locations. But those maps will give you a general idea. Some things to think about / research. (Oil&Gas is my career field btw) Does the property have gas rights (gas like coal or other minerals could have been "reserved" by a prior owner, which means they keep the rights to them and all you may get is surface rights) Make sure you run a mineral title, in addition to the real estate/mortgage title. This applies regardless if you go through a bank or land contract. It may have existing production (means gas rights would be "held by production" by whatever gas company had leased and drilled the property in the past. Sometimes companies will keep a gas wells going even if it's just barely producing, just to keep the gas rights they have under lease. This will allow them to return and drill at deeper formation in the future. For instance my x-gf's grandfather owned 120ac in Cambridge area, a shallow gas well (doesn't require much acerage) was drilled in 1950's and is still going today, barely. But that company still has rights to drill more wells anywhere in the 120ac tract until production ceases. All about negotiating the right lease and he could have avoided that and had maximized the potential of his acreage. "IF" you can get mineral rights, and get it in the right areas. You can literally pay off the property by leasing the gas rights. When you lease, your paid a "delay rental". In past these were broken down to yearly/quarterly payment. Presently this is usually paid in full, 60-90 business days after a signed lease and mineral title ownership is verified. I've seen $6000 per acre during some fierce turf wars between gas companies for prime areas. (prices have come down a bit though, all depends on location, maybe as low as $250 per ac) Then if/once gas well is drilled your paid a royalty ranging from (1/8th) 12.5% up as high as you can negotiate it. Depending upon how much production the well makes, it can be very very lucrative. So it may be best to grab a larger piece then you had intended. "the most valuable thing in the world is land, because God isn't building anymore" Thats just some of the basics, I could go on for awhile on this topic. PM me when time comes and I can give you a hand with anything O&G related. Quote Link to comment Share on other sites More sharing options...
indy82z Posted June 18, 2013 Author Report Share Posted June 18, 2013 Really good information..Thanks a lot!!! Quote Link to comment Share on other sites More sharing options...
kshymkiw83 Posted June 18, 2013 Report Share Posted June 18, 2013 be VERY VERY careful with land contracts Quote Link to comment Share on other sites More sharing options...
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