Small Acreage Loans

[raw10628]

Anyone have experience with small acreage loans? The wife and I are considering buying 5 acres to build on next year and want to start reaching out to some lenders. We know of Capital Farm credit and will probably go there first but would like to hear others that have had success.

Also, what are the typical down payment requirements, is there anyone out there doing 100% loans on small property less than $130k? We have always had typical 30 year mortgages so not sure on length of terms and rates on a loan of this type.

[Stan R]

Capital farm Credit or smaller local banks will be your best bet.

No sure of the term but doubt you will get 100% on land.

[12RingKing]

Capital farm credit, atleast the ones I spoke with, aren't very interested in small acreage places. They prefer 20+ acres.

It's a hassle for them to do 10 and under.

Your best bet is a local CU or small bank. I'd go with a CU

[Quackerbox]

When looking at some coastal property last summer everyone wanted 20% down on raw land.

[Big Ace]

From the people I have talked to, including CFC, a minimum of 80% LTV must be achieved before they will finance. That usually means at least 20% down payment. Also loan terms on raw land are typically 15 years and under with 5-10 years being the norm. Good luck bud.

[sasqy]

Local bank for sure as long as the value vs loan is all good.
Its easier for local banks to deal with home town business and easy fir them to resale if default . What area are you looking ? And yes everyone wants to see 20% down available but will usually close with less down

[KingsX]

Anyone have experience with small acreage loans? The wife and I are considering buying 5 acres to build on next year and want to start reaching out to some lenders. We know of Capital Farm credit and will probably go there first but would like to hear others that have had success.

Also, what are the typical down payment requirements, is there anyone out there doing 100% loans on small property less than $130k? We have always had typical 30 year mortgages so not sure on length of terms and rates on a loan of this type.

Some banks can do lower down payment percentages but not many do.
Most are %20 down and 20 year or less loans.

[justintyme8303]

So far being told 20% dw for 15 years is max. Unless you are a Texas veteran the VLB will do 5% dw and 30 years.

[glocker]

I just made this call with a local bank they wanted 20% down and 7 year loan at 7%

[d_e_smith]

Have a business you can wrap it up in?

[AddisonOil]

I just made this call with a local bank they wanted 20% down and 7 year loan at 7%

Holy moly

[Tex1986]

Small Acreage Loans

When we bought ours a few years ago everyone was 20% down for up to 15 years. At that time I had never done business with a credit union. I called one in town to ask about rates.They blew everyone away on interest rates.I would definitely check them out.


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[captainsling]

We bought 10 acres and Capital Farm did ours. They require 20% down like anyone else. They did a 15 year amortization. They can do a different type loan if you are planning on building with in a year, but you will still need the 20% down.

The good thing about Capital Farm when you get a loan they have very minimal closing costs and you become a share holder. You will get a dividend check every year. Ours averaged about enough to make 2 payments a year, which I consider pretty good. When you go to sell, you get that share holder money back in return, besides whatever profit you make. If you keep it to maturity, you get it back once your loan is paid in full.

They were very easy to deal with.

[TeamAmerica]

Best bet is local. A few phone calls and you will be talking to real human being in no time. Plan for 20% down 15 year and maybe get a 30 year amortization. I got 4% but mine wasn't raw land. Hurry rates are going up!

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[cosmiccowboy]

No matter where you need to plan on 20% down.