Does anyone know how I might get financing for a piece of land w/o putting much money down? My credit is A+.?

Answer 1

Ask your agent about seller help, too. It's an option that can be very helpful especially when you're talking about first time buyers with little to no money down.

Congratulations on the A+ credit, by the way!

Answer 2

Lot loans are riskier than loans against land with a home on it.

Quite simply, there's more buyers for existing homes than there are for land. Easier to sell it in case of default.

I'd contact several local banks in the area where the land is. Some small banks might specialize in this kind of stuff. Major banks are often more restrictive. A mortgage broker might be able to place a loan for you as well.

Finding financing with less than a 10% downpayment will be difficult. Also, your rates will NOT resemble a standard mortgage. They'll be more similar to a 2nd mortgage, higher rate to cover the higher risk.

And because there's very little value in servicing your loan, as it's going to be assumed to be temporary (likely to be paid off and built on within 2-3 years?), the upfront costs might be proportionally higher than a 2nd mortgage.

Just a few things to expect... even with perfect credit. Your credit matters, but collateral matters too.

But really, shop many local banks. Ask right off if they have a lot loan program. Some will, many won't. Know what you have, as well. Is the lot in an already subdivided area? Is sewer/water available? A raw, rural lot is less readily marketable than a quarter-acre parcel in a suburban development that already has sewer and water lines running to it, for example. They might finance a higher loan-to-value on a developed lot.

Answer 3

Buying land is another ball game all together. Some lenders consider land buying as speculative or a far off investment.

There are a few lenders that will give a person a loan for about 80%-90%. This will demend on your credit score.

You should contact a mortgage broker in your area about purchasing the land. He has many lenders for various programs that will allow you to purchase the land with the best rates as well as the least amount of money down.

If you plan to build a house on the property immediately then tell you mortgage broker this will put you in a different ball game.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 4

Just get a good loan officer; it's that simple. I suggest Hometown Banc Corp. They may be your best opportunity for someone to say yes. If your credit does not measure up, they don’t simply “forget to call you back.” They help you get into a credit repair program you can afford regardless of income. Check out the free evaluation form at the source website and a Hometown loan officer will contact you

Answer 5

With A+ credit you should have no problem what-so-ever!! Owner financing? Go to your regular bank, and talk to the realtor, they often have resources we don't think of.