[burninghxcsoul]

My wife and I think it would be fun to have a rec property were we can take our kids to and have fun in the winter and summer. Namely ride 4wheelers and dirt bikes and go camping stuff like that. Obviously also I am looking at it from a hunting perspective also. After looking around at rec non building properties with acreage, how are you guys financing bare land from 100k to 200k? After doing some initial reading online it seems most banks don't like to do loans on these kind of properties unless there is a dwelling on them. We would like to purchase land first and then after a year or so put a rustic cabin onsite. Maybe a shabin or something. Are there banks or loan businesses that specialize in this sort of thing? My credit is above excellent and putting 20 to 30% down wouldn't be an issue. Just wondering how other people have financed properties like this. Thanks.

 

[Steely Ran]

How about putting your primary dwelling up as collateral for the loan. I'm sure the banks are looking for some type of collateral to cover their interest. Or a home equity loan if you have enough equity in your home to cover the loan amount.

 

[LuckyTom]

I know M1st FCU has land loans.

 

[25ftup]

Home Equity Line of Credit is how I bought my land and camp. One of the best Leaps I’ve ever made.

 

[BIGGAME]

I used agchoice farm credit. I put down a little over 60%. So that may have helped secure the loan.

 

[Snowcrazy]

May help to deal with a smaller local bank in the general are that you are buying the property. They will understand their market better and the local banks typically are more flexible with land only loans vs some of the national banks.

 

[59Willys]

land of that size and money the lender would like to know what improvement is going to be done to protect there investment, home being built, logging,golf course.farming? for recreation use you might need to put a larger % down. A straight loan for land could be lesser years then say a house loan. Go contact your bank, credit union they'll guide you in the right direction. or maybe the seller might finance?

 

[tundragriz]

Refinance your current mortgage to include the land parcel. Bank will hold title on both properties against the loan. With an appraisal on your current property they can tell you how much they will lend towards the land. In my case the house was paid off, they appraised it and decided there was enough to finance the land putting both up against the loan.

 

[RegularJoe]

I used agchoice farm credit. I put down a little over 60%. So that may have helped secure the loan.

Second vote for agchoice. Traditional banks turned me down, agchoice was able to work it out. They would-be my first phone call if I were buying land again.

 

[Tater86]

Kish Bank out of huntingdon is very easy to work with. If you have a good credit, they only ask for 25% and they had the best rates when I used them. They do work with land purchases outside of their office areas as well. I believe they also offer a discount rate if you set up an account with them and they draw the payment from that account.

 

[NECK SHOT]

You’ll find someone to work with you.
we ran into that same thing buying land in Ohio. They wanted a plan for putting a dwelling on.
but got it done without much hassle.

 

[old greybeard]

+1 finance with equity in your home. That way all the interest is tax deductible.

 

[cspot]

My wife and I think it would be fun to have a rec property were we can take our kids to and have fun in the winter and summer. Namely ride 4wheelers and dirt bikes and go camping stuff like that. Obviously also I am looking at it from a hunting perspective also. After looking around at rec non building properties with acreage, how are you guys financing bare land from 100k to 200k? After doing some initial reading online it seems most banks don't like to do loans on these kind of properties unless there is a dwelling on them. We would like to purchase land first and then after a year or so put a rustic cabin onsite. Maybe a shabin or something. Are there banks or loan businesses that specialize in this sort of thing? My credit is above excellent and putting 20 to 30% down wouldn't be an issue. Just wondering how other people have financed properties like this. Thanks.

Some good advice above. My recommendation is talk to the lenders and figure out what you can finance prior to finding a place. That way you will know what you are getting into prior to making an offer on a place. What area are you looking at finding something?

 

[bucksnort1]

Don't waste your time with Orrstown Bank.

 

[burninghxcsoul]

Some good advice above. My recommendation is talk to the lenders and figure out what you can finance prior to finding a place. That way you will know what you are getting into prior to making an offer on a place. What area are you looking at finding something?

We are looking around bedford and huntingdon counties. Something where we could be within 30 minutes of raystown lake for boat use.

 

[BIGGAME]

Just saw 300+ acres in Bedford for $400,00 on landwatch. Its been logged hard but good deal for the money.

 

[RB]

I will also suggest AgChoice when it comes to just land you dont plan a house on. Keep the loan term short as you can.