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Buying land with less than 20% down?
#6144302
01/20/16 03:49 AM
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Joined: Nov 2011
Posts: 11,073
Texas buckeye
OP
THF Celebrity
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OP
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Posts: 11,073 |
Have the means to make monthly payments but at this point can't make a down payment without it killing the savings acct....any way out there to buy land with less than 20% down?
Every time I have talked to the farm credit folks they always tell me the 20% down is standard and rarely departed from for first time buyers....
Any help is appreciated!!
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Re: Buying land with less than 20% down?
[Re: Texas buckeye]
#6144342
01/20/16 04:28 AM
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Joined: Dec 2011
Posts: 14,332
Ramsey
Pepe' Le Pew
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Pepe' Le Pew
Joined: Dec 2011
Posts: 14,332 |
Are you a vet? How much land?? It will be easier if there is a house on the land.
Big Beckett!!
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Re: Buying land with less than 20% down?
[Re: Texas buckeye]
#6144346
01/20/16 04:30 AM
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Joined: Dec 2012
Posts: 697
JTS
Tracker
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Tracker
Joined: Dec 2012
Posts: 697 |
If the land appraises for quite a bit above the sales price they may reduce the down payment to 10%. That is the least I have heard of.
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Re: Buying land with less than 20% down?
[Re: Texas buckeye]
#6145117
01/20/16 07:31 PM
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Joined: Mar 2007
Posts: 5,226
Rustler
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THF Trophy Hunter
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I definitely would not rule out local banks, sure worth checking into in my experiance.
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Re: Buying land with less than 20% down?
[Re: Rustler]
#6145206
01/20/16 08:31 PM
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Joined: Feb 2012
Posts: 10,675
DQ Kid
THF Celebrity
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I definitely would not rule out local banks, sure worth checking into in my experiance.
Rustler, for land loan default purposes requiring quick sales?
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Re: Buying land with less than 20% down?
[Re: DQ Kid]
#6145229
01/20/16 08:41 PM
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Joined: Mar 2007
Posts: 5,226
Rustler
THF Trophy Hunter
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THF Trophy Hunter
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Posts: 5,226 |
I definitely would not rule out local banks, sure worth checking into in my experiance.
Rustler, for land loan default purposes requiring quick sales? If I understand your question correctly, no, for financing land purchase. It is a rare event when semi decent land isn't bought by a local before it ever reaches the court house steps auction or for a bank dumping defaults.
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Re: Buying land with less than 20% down?
[Re: Texas buckeye]
#6145234
01/20/16 08:45 PM
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Joined: May 2010
Posts: 855
jsplinter
Tracker
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Tracker
Joined: May 2010
Posts: 855 |
If you are a vet you can use Texas Veterans land Board. They require 5% down with land loans up to $125,000. That's who I am using right now. Also if anyone is in the Kempner area they have a 14 acre plot of land up for auction right next to the one I'm buying.
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Re: Buying land with less than 20% down?
[Re: Rustler]
#6145240
01/20/16 08:49 PM
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Joined: Mar 2012
Posts: 823
newulmboy
Tracker
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Tracker
Joined: Mar 2012
Posts: 823 |
I definitely would not rule out local banks, sure worth checking into in my experiance. I used a local bank about 4 years ago when I purchased my place. They wanted 15% down. Only kicker was interest rate was about 1% or so higher.
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Re: Buying land with less than 20% down?
[Re: Texas buckeye]
#6145303
01/20/16 09:39 PM
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Joined: Jan 2013
Posts: 1,833
sparrish8
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20% down is standard but think about it why keep $ in your savings rather than put it in land? You will make no to little interest where your land will gain much more value every year its a much better investment. Obviously you need some emergency $ but you never here anyone one say "darn i wish i wouldnt have bought that land".
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Re: Buying land with less than 20% down?
[Re: sparrish8]
#6145327
01/20/16 09:51 PM
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Joined: Nov 2011
Posts: 1,197
Chris42
Pro Tracker
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Pro Tracker
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20% down is standard but think about it why keep $ in your savings rather than put it in land? You will make no to little interest where your land will gain much more value every year its a much better investment. Obviously you need some emergency $ but you never here anyone one say "darn i wish i wouldnt have bought that land". I disagree. Plenty of people can get themselves in trouble by buying property. Especially if they leverage themselves and are cash poor. (Which is kind of what the OP is sounding like). What is the land? Hunting land? Gonna build a house someday? Today?
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Re: Buying land with less than 20% down?
[Re: Chris42]
#6145348
01/20/16 10:08 PM
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Joined: Nov 2011
Posts: 11,073
Texas buckeye
OP
THF Celebrity
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OP
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Joined: Nov 2011
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20% down is standard but think about it why keep $ in your savings rather than put it in land? You will make no to little interest where your land will gain much more value every year its a much better investment. Obviously you need some emergency $ but you never here anyone one say "darn i wish i wouldnt have bought that land". I disagree. Plenty of people can get themselves in trouble by buying property. Especially if they leverage themselves and are cash poor. (Which is kind of what the OP is sounding like). What is the land? Hunting land? Gonna build a house someday? Today? I agree that depleting my savings is not a wise investment. Being a small business owner that could cripple me if something happens and the business needs something. I need to have a safety net, and I don't want or have any desire to take that away, despite my desire to have a place to call my own (and my son's greater desire). Ideally, would be looking at raw land or something with a cheap cabin or manufactured home on it we could live in temporarily and then ultimately build a nice small cabin to live in as we get a little older. Something with a nice house on it doesn't interest me at all since most houses are someone else's style and not the wifes, and are built to meet their needs and not ours. Plus, those really jack prices up. Seems raw land is the way to go. But, sounds like I need a couple more years to build up the savings before I can afford the down payment for what I am looking for...nobody said patience is easy right?
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Re: Buying land with less than 20% down?
[Re: Texas buckeye]
#6145434
01/20/16 10:50 PM
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Joined: Nov 2011
Posts: 1,197
Chris42
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Sounds like a cool plan.
Good luck!
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Re: Buying land with less than 20% down?
[Re: Texas buckeye]
#6146532
01/21/16 04:36 PM
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Joined: Jul 2012
Posts: 878
wtjim
Tracker
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Tracker
Joined: Jul 2012
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Why not lease a nice place to get your hunting in as well as take a Client and write off lease expense at tax time? At least until you are set to buy....
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Re: Buying land with less than 20% down?
[Re: Texas buckeye]
#6176442
02/09/16 10:27 PM
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Joined: Apr 2011
Posts: 353
TexasLandAgent
Bird Dog
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Bird Dog
Joined: Apr 2011
Posts: 353 |
Owner finance is a possible low money down option. But APR is going to be sky high and your term short. You can get into scenarios on an owner finance with 5-10% down in some counties.
Last edited by TexasLandAgent; 02/09/16 10:28 PM.
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Re: Buying land with less than 20% down?
[Re: Texas buckeye]
#6177139
02/10/16 09:25 AM
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Joined: Jan 2009
Posts: 12,271
kry226
The General
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The General
Joined: Jan 2009
Posts: 12,271 |
I agree, continue to save until you're ready.
But is there something you can sell? I sold my Harley to help with the down payment. I love being a landowner much more so than a biker. Something to think about.
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Re: Buying land with less than 20% down?
[Re: Texas buckeye]
#6185657
02/16/16 02:24 PM
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Joined: Sep 2009
Posts: 316
goosecrazy
Bird Dog
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Bird Dog
Joined: Sep 2009
Posts: 316 |
What about a double morgage?
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