Hi, Are you looking to buy land to build a home one day?
Please Be Aware of the Cost Up Front... A few Words from my lender on the subject.
Land only is a tough one. You need between 30 to 50% down for this type of loan. If you’ve got credit issues or any glitches with income you’re stuck with the hard money options. The trouble with the hard money options is that the rates can be quite high. The MUCH better options will be with Washington Fed. I’m going to call them today to see whether they allow gifted funds for the down.
If we were just talking about a property with a home on it - you can do as little as 3% down and gifted funds are fine. And we can go as low as a 620 credit score.
Land only loans require the most money down of almost all loan types and can have some other restrictions as well. Is that down payment amount even in the ballpark? I can chat any time though on my cell phone 541-255-9865 or after 8:00 am on my office line 541-799-3610. The reason land only loans are trickier is because lenders know if for some reason they have to take them back they’ll often have them on their books for years or over a decade sometimes unless they cut the price below what’s owed and take a loss. The demand for land only is a fraction of what it used to be - so that sector just hasn’t made a comeback after the crash. But even before the crash you were always looking at more down and higher rates - just not nearly this much down.
I’m happy to chat and refer you to a couple lenders who do them if that’s feasible for you! We don’t offer them but I know several places that do. If your credit is pretty good you can do 30% down with places like Washington Federal.
Shad S. Carson
4710 Village Plaza Loop, Suite 130, Eugene, OR 97401
541.799.3610 D | 541.255.9865 C | 888-468-9412 F
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Opes Advisors, A Division of Flagstar Bank
Please call Shad and get preapproved, then call me and lets find you the home that is made for you :) Becky Shiffer @ Becky's Realty Group 541-913-9910