Loans On Raw Land?

[busybee870]

Where Do You Get A Loan For Raw Land? Everyone Around Here Says You Have To Have Water And Septic Before They Will Make A Loan, That Was The Purpose For The Loan I Was Requesting. Anyone Know Of Any Lenders?

[steader]

Start here: http://www.agribank.com/

Also check with local, rural banks located in the same county as the property, there should be some that specialize in rural land. If we would have bought 10 or less acres it wouldn't have been a problem through our credit union.

[Mavors]

Farm Credit

Is another option. There are plenty of lenders out there that will work with you, but even more that won't even talk to you about land purchases or even home building when you have more than 5 acres.

FYI Farm Credit is really focused on land 10 acres or more. Ask around and shop around for the best deals.

[Forty Acres]

If you have an Arvest Bank in your area, they will loan up to 100% of sales price or appraised value (whichever is lower) on raw land. Water & utilities are not an issue.

[Junkmanme]

much more difficult than housing, commercial, or rental. Generally much shorter term. Secondary market is sometimes available, same lenders as 2nd mortgages. It's easier if the vacant land is "income-producing".

Always, in my opinion, requires a "stronger" income from borrower.

Sometimes it is just a lot easier to get an "unsecured" short-term "signature" loan and then just do what you need to do. Less "red-tape" and less difficult for the "loan-officer" to justify.

A friend of mine once borrowed money to go gambling in Las Vegas. He used the money to "pay off" a mortgage. Later, when the banker found out what he had done, the banker asked "Why didn't you tell me that you were going to pay off that mortgage with the loan?" Answer: "Would you have lent me the money?" Banker: "Probably not." :baby04:

Go figure.

[Ramblin Wreck]

Credit unions, a home equity line, and your local bank (locally owned) would be my first suggestions. Good luck.

[busybee870]

Forty acres....thats exactly who told me they wouldnt loan me the money without the water and septic already being there. they have been NO help whatsoever.

[SteveD(TX)]

Get bids from three different companies for the well and septic. Put your land under contract subject to financing. Then get on the phone with every bank in the vicinity, telling you want a loan to buy the land and install your improvements. You will find one, but you might have to be able to put 20% down or so.

[Deb862]

I've spoken with I think it is Farm Bureau Bank (phone 1-866-901-3276) and they have been very helpful. They loan on raw land in most states. Only criteria is that the land must have power to the property line and not be on a seasonal road. Credit-wise, things they are looking for are a credit score of around 700+, 10% down, and will allow you to go to about 40% debt-to-income ratio. The person I talked with said they their loans on raw land are made by "real people" unlike their residential/farm loans, which are decided on by a computer basically. She said their criteria, therefore, for raw law are more "flexible." You might try talking to them.

[Hike4beer]

I was able to get a loan set up from our Real Estate agent through a local bank when buying unimproved land out of state. My bank and my company credit union would not touch it.

[mary,tx]

Around here you would not be able to get a loan from a regular bank.
We got ours from Texas Land Bank. Perhaps you have a Land Bank in your state? Surely those bankers can tell you who does loan on raw land.

[Forty Acres]

Originally Posted by busybee870

Forty acres....thats exactly who told me they wouldnt loan me the money without the water and septic already being there. they have been NO help whatsoever.

You might try a different Arvest branch. I bought 43 acres in March of 2006 and financed it thru Arvest and they never asked whether it had utilities or not.



I dunno. I put 25% down and they loaned the remaining 75% @ 8.0 % interest for 15 years. They didn't even get an appraisal. The sales contract was sufficient to establish a value for them.

Good Luck!!!

[busybee870]

thanks deb, FORTY ...youre kidding? I have electric and phone already, and already paid 10,000, think that would help?

[MariaAZ]

Busybee, I hope you don't mind me hopping in with a similar question.

What about purchasing land as investment, ie lumber or crop? How does one find loans for that?

[Forty Acres]

Originally Posted by busybee870

thanks deb, FORTY ...youre kidding? I have electric and phone already, and already paid 10,000, think that would help?

Well I would certainly think so. My land does not have any utilities within a 1/2 mile of its' boundary. A water well is not an option, as the ground water was ruined by oil wells. And rural water is nearly a mile away. There is an electric line about 1/2 mile away. I told Arvest that I was buying it strictly for recreation purposes (hunting). No problems.

Hope all goes well for you.

[MarleneS]

I'm not sure we live in the same county but we do live in the same areacode if that is what your 870 refers to. Unless things have changed a great deal in 10 years, you can get a loan for what you called raw land, if you qualify. PM me if you wish the name of a lending institution.

Hugs,
Marlene