I was wondering if anyone had a land loan or had heard anything about them. DH and I eventually want to move out 20 minutes to a more rural area. We found some land that we like, it has nice acreage (8 acres) for 50K - something really hard to find. We aren't ready to move out and up, but we would like to go ahead and purchase the land before land prices out there go up. But I've heard land loans have higher rates than home loans. Any opinions? We will be calling around to check it out, but I just wanted to "feel" it out first.

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Mom to Kaylee (10/2006)
Waiting on our second bundle of joy to arrive January 2009!

We had to make the same decision last year. We talked to a number of lenders. You geta good rate IF you commit to a building loan as well right away.

We ended up paying cash for the land. Now we are talking to the bank about building and they are calling the entire purchase price of the land as our downpayment. It will then be rolled into the mortgage. So we don't have to put any more money into it and we will have enough equity to not get PMI.

Cathleen

Thanks for the info., Cathleeninnh! DH & I were wondering about that ourselves.

Check out SunTrust bank. I used to use them for all of my construction perm loans and they have some of the best rates around without all of the extra junk fees. Not sure exactly the terms of how long you can stretch it out but it can't hurt to ask. If you need a referral of a incredible contact I would be happy to share mine.

Congratulations on finding a great piece of land. I hope everything works out great for you.