I'm thinking about purchasing a property outside of town that has 40 acres and several buildings (home, garage, barn). Considering the current financial situation of the lenders, is anyone loaning on such properties? If so, are they more stringent on requirements? It has city utilities.
Any insights welcome.
I was playing poker with my investment banker on Wednesday and asked that question. He said that most banks are continuing to loan money, they are just being more cautious about the loan.
If the property is worth what they are asking, you have some reasonable amount as a down payment and have a decent credit rating, you should be OK.
If it is in Tulsa County, let me know. I am now on the Tulsa County Consevation District board and can do some research for you.
He hasn't even bought it yet and RM is moving to try and Consevate with it.
just outside the county line. Lower taxes, cheaper utilities, wild dogs, hillbillies, sounds of shotguns...usual stuff for outside the city.[;)] Bankers used to be skittish about loaning on "farm" land or acreages. Just wondering if it poses any difference in loan requirements.
Does this mean that your avatar name will change from "waterboy" to "backwoodsboy" or "banjoboy"?
quote:
Originally posted by waterboy
just outside the county line. Lower taxes, cheaper utilities, wild dogs, hillbillies, sounds of shotguns...usual stuff for outside the city.[;)] Bankers used to be skittish about loaning on "farm" land or acreages. Just wondering if it poses any difference in loan requirements.
If lenders won't loan under their conventional program, you can probably get an FHA or USDA insured loan if the price on the property isn't too high. ($417k for the good rates, IIRC)
The downside to the FHA loan is the required mortgage insurance, but you'll have that with a conventional lender unless you either have 20% down or go with a piggyback loan. The plus is the low down payment requirement. Only 3% right now, although it goes up to 3.5% next year.
Of course, any loan will be contingent on an appraisal showing the value of the property, which can be somewhat harder on country acreage, but it's certainly worth a try.
Thanks, thats helpful. The place has a pond so I can still float a boat and carry on my pretense of "Admiral of the Inland Seas".[;)]
I think you have blurred your television shows. Part Green Acres, part Gilligan's Island.
I am a Realtor; yes lenders are lending. It all comes down to the purchasers ability and the appraisal.