Down Payment On Raw Land?

[Hobbs]

I haven't called any banks yet but from what I gathered from google I would need 20% down minimum for financing raw land. Is this correct?

[M16]

Yes, that is the usual down payment.

[buzzbait]

I am closing on Thursday on some acreage next to me. My bank required 15% down

[Chew]

If you happen to be a veteran, you can get a smaller down payment through Texas Veterans land board. Other than that I've only heard of 20% for raw land.

[6.5 shooter]

Yes, 20% unless you’re a vet.

[Heath]

I am closing on Thursday on some acreage next to me. My bank required 15% down

I went with a local bank and mine was 15%

[crawdaddct]

I did 10%, but it was owner financing. Paid it off in a year.

[TWP]

Depends, I’d ask the seller what they are going to do with the money??? Do they have a 1031 lined out? If they are going to put it into the bank they may be willing to carry the paper and then it is up to what you negotiate. If they have their own note on it and want to cash out you can usually get lower rates at local banks where you do business already.

Don’t be afraid to look outside the box. If you look at enough places and make enough offers you can get it done many ways. Best of luck to you!!!

[quackadikt]

Are you buying a lot to build on, or some recreational land? Lots are typically 25-30%. You can get into rec land for 15% down.

[Hobbs]

10-50 acres. Some are 5 acre lots combined into larger tracts others are just normal land acreage. Might build might not. It would be a second home or rental not my primary residence.

[Darton]

Depends on the appraisal, if you buy it right the 20% down payment can be reduced!

[Antlers86]

We did 15% down

[mzurovec]

1 acre lot was 20% down

[Hobbs]

Is 6.25% interest a decent rate? The loan officer said it was variable. I'm not sure he can offer a fixed on the property I'm looking at. This one actually has a home on it but is not in good enough shape to live in. I may look at gutting it down to the studs and renovating it but more than likely it will get demolished. He also said he would only need 10% down (I guess because of the old house) but I would probably put 20% down so I don't have to have the mortgage insurance. Working on pre-approval now so I can make an offer when the time comes. Thoughts on this scenario are welcome. What am I missing?

[91cavgt]

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