Posted by GL(ON) on September 09, 2002 at 16:57:32:
I would ask the owner to hold the mortgage. Explain that it is very hard to get a bank to finance vacant land. No doubt he already knows this.
If he won’t finance it then go look for another piece of land with a seller who will. I wouldn’t mess around with credit cards etc. on a non productive piece of land.
Land Loan = high down payment! - Posted by Tim (ME)
Posted by Tim (ME) on September 09, 2002 at 12:15:35:
Hello all,
I tried looking in the archives to see if my question has been answered before, but the archives are under construction right now. I’m sorry if you’ve heard this question before!
I am looking to buy a 4 acre lot to build a house on (not immediately, but in a few years). I have enough cash for about 10% of the value. However, most banks around here require about 35% down on raw land. I have some ideas on how to come up with the rest of the down:
Ask owner to finance the full price, and never deal with a bank.
Ask owner to finance the other 25% of the down payment.
Cash advance on a credit card for the balance of the down payment.
Loan from a friend for the balance.
I just bought a duplex in April, so there is probably hardly any equity there. I have done extensive remodeling in my own unit, but I think it needs a little time to appreciate (I bought it at market value).
I do own an acre in Hawaii free & clear, but I think I would need a Hawaiian bank to put a mortgage on that to get any cash out.
These are just some ideas I’m kicking around. Has anyone done any of these things, or would you have other ideas for me to come up with the rest of the down payment?
Thanks in advance for all your advice, and I love the new look of the site!
Tim (ME)