topic Loan For Land VS Home in Mortgage Loans

Loan For Land VS Home

Anonymous — Wed, 18 Feb 2009 15:22:10 GMT

Net income: $120K, 5 years self-employed, S-Corp

Scores: 698, 688, 701 - credit problems over 4 years ago- clean since

Two credit cards: paid off monthly, limits: $13K & $11K

One car loan: $800/month, paid off this November

Question:

How do banks look at a loan for rural land only (currently no house on property) if the purchaser plans to build a home within one year? Are there different criteria for such a loan? Would FHA cover such a loan? I would put down at least 20% on property. I would also be considered a First Time Home Buyer (or land buyer!!!).

Thank you.

Re: Loan For Land VS Home

DallasLoanGuy — Wed, 18 Feb 2009 16:58:55 GMT

I have only looked into this in Texas.

But we send our clients to 'land banks'.

20% likely needed down.

This wouldn't fit conforming or fha

Call a lender in your area. They should be able to point you in the right direction.

Re: Loan For Land VS Home

Anonymous — Wed, 18 Feb 2009 18:53:22 GMT

I just purchased 20 acres here in Arkansas... I checked with our local banks and credit unions all wanted 20% down and would only go 10 years on land only notes... I ended up using our local owned credit union... I asked the same question and was told can't use FHA for land only, but once we're ready to build on the land and the house was finshed the note could be redone into FHA or normal 30 year/ 15 year mortage...

Also fellow Worker/Good friend of mine also just purshed 74 acres in Texas and they told same thing... He also ended using same credit union...