chrisser
03-07-2008, 09:44 AM
So my wife and I found a 26 acre piece of property at a great price. Has a run-down house on it.
I talked to a trusted realtor I know and she said buying a property where the land is worth more than the house is problemmatic to finance because its a land loan instead of a home loan, especially if you don't intend to build right away.
I'm just starting my research. I know we could afford the payments if we got a decent interest rate, but in order to free up the money I have to get out of a car loan and that will cost me half the $$ I would have used for a down payment and the various fees and due diligence expenses will eat up a lot of what's left. We got married late last year and between that and what I've spent on our house (roof, remodelling, etc) left me with little equity or savings. I had planned on something like this six months to a year from now, but the place is exactly what we want - its one of those "last place we'd ever live" sort of properties.
Still, I think we could swing 5% down for a place that's listed for less than the appraised land value, and 2/3 of the overall property value.
Just curious what others have experienced lately in the financing marketplace buying land for the land's sake. We have a house in the city that we want to keep and, ideally, rent. Long term, we'd sell it, but the market is soft now.
Just between us, I'd be comfortable fixing up the existing house on the property and living in there for a few years, building another house later, but it appears I can't do the deal that way right now.
I talked to a trusted realtor I know and she said buying a property where the land is worth more than the house is problemmatic to finance because its a land loan instead of a home loan, especially if you don't intend to build right away.
I'm just starting my research. I know we could afford the payments if we got a decent interest rate, but in order to free up the money I have to get out of a car loan and that will cost me half the $$ I would have used for a down payment and the various fees and due diligence expenses will eat up a lot of what's left. We got married late last year and between that and what I've spent on our house (roof, remodelling, etc) left me with little equity or savings. I had planned on something like this six months to a year from now, but the place is exactly what we want - its one of those "last place we'd ever live" sort of properties.
Still, I think we could swing 5% down for a place that's listed for less than the appraised land value, and 2/3 of the overall property value.
Just curious what others have experienced lately in the financing marketplace buying land for the land's sake. We have a house in the city that we want to keep and, ideally, rent. Long term, we'd sell it, but the market is soft now.
Just between us, I'd be comfortable fixing up the existing house on the property and living in there for a few years, building another house later, but it appears I can't do the deal that way right now.