Looking for a Land Loan

4 Replies

We have a buyer in Colorado who wants to buy land - they do not want to do a construction loan - they just want to purchase the land but need to finance it.  We have directed them to FirstBank because we understand they will lend on land.  Any other suggestions?

Thanks!

Let me know if you prefer to PM, text or e-mail me.

Tim

Originally posted by @Tim Jones :

We have a buyer in Colorado who wants to buy land - they do not want to do a construction loan - they just want to purchase the land but need to finance it.  We have directed them to FirstBank because we understand they will lend on land.  Any other suggestions?

Thanks!

Let me know if you prefer to PM, text or e-mail me.

Tim

Can't speak for Colorado but in Seattle the banks almost never give out horizontal loans, particular on long plats. I've heard it done but highly highly unlikely. We go to private money sources for the horizontal loans usually at 70% loan to cost, 8%, 5 points (2 points paid-up front). 

Wishing you luck on this one - I don't know of any banks lending on land without a development plan or primary residence. I would try getting owner financing from the current owner (not uncommon in land transactions). Or approach local banks close to the parcel with 50% or more down. 

@Tim Jones @Travis Sperr

Tim - my experience with land loans is exactly what Travis mentioned, work with small local banks that know the area and be prepared to put about 50% down.  Or as mentioned above, seller financing is also used often.  Just make sure you get it appraised with the seller financing so you're not overpaying.

Good luck! 

- Tom