How much land can I afford?
Establishing a budget for your land purchase is key - let's do some ball-park, armchair budgeting... play with these mortgage calculators to get a feel for your payment schedule.
What are some land financing options?
Land can be purchased in many ways.
- There's always the "traditional" loan approach.
- Some sellers do offer owner financing.
- If you have considerable equity in your home you could consider a home equity line of credit (HELOC).
- Also, you can purchase land by transferring existing funds from an IRA account to a self directed IRA account. Usage restrictions apply. The custodial firms below offer these services and have some great background and frequently asked questions on their web sites. Check it out!
- Also, the United States Department of Agriculture (USDA) offers various loan programs. More info here. Once on this page, select "Programs and Services," then "Farm Loan Programs" – you will see many different types of loans…
You may want to seek the advice of your accountant and/or financing advisor before utilizing any of the approaches above.
I'm interested in a traditional type loan - where can I look for financing?
One place to start may be with your existing bank where you have credit history and an existing relationship.
Since many of our properties are in rural locations, another option is to check out smaller, local banks near the property you are purchasing.
Lastly, these organizations "specialize" in land financing and generally have branch offices in the rural areas that I service.
Note: Generally, loan officers in these financial organizations can give you a quick "pre qualification" analysis... this can be an invaluable tool to help establish a budget before searching for land.
These links are provided for informational purposes only. We are not endorsing any of these organizations. Consult your accountant, attorney, or other subject matter professional for advice.