Jason KokReal Estate Broker
Lake Homes and Farms Realty 608-386-5597
Our team of experts will help assist you with finding the right lender if you need the help. We have several local lenders that are waiting to assist you. In the past, financing vacant land posed a high level of risk to potential lenders. They feared that the lack of a structure may make buyers more likely to let the land go into foreclosure if loan payments become a burden. Lenders today tend to require only 20% down payments for vacant land loans. Interest rates are still at historic lows. Why buy on a land contract when you can get a loan from the bank? Call me for more lender information.
Typical payment on a $50,000 purchase at 6.0% interest, amortized for 20 years.
20% initial Investment
80% Bank Financing
*****Monthly payment $268.58*******
*****Monthly payment based on financing $40,000 at 6.0% amortized over 20 years.***
You may also opt to use home equity to purchase your vacant land. This may have tremendous tax advantages for you, because in many cases the interest paid on this type of loan is tax deductible. You should always contact a professional accountant or tax advisor if there are any questions about this.
Let my decade worth of land experience help you get the options that you need when picking your lender. Approvals are quick and closings on land generally happen in 30 days or quicker so that you can start enjoying your Land purchase.