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Discussion Starter #1
I wasn't sure where else to put this. I found a great piece of property to buy,and I have been saving up, but I wasn't really in the market this year due to other expenses. Well this is an awesome opprotunity so here's the question. I have heard that on this type of purchase you need about 20% down, is this true and/or does anyone know a lender that requires less? I could take money out of my 401k but I have to retire in 5 years, at age 56 (mandatory for air traffic controllers), so I really don't want to do that, but I will think about it to get this property. I know I have seen commercials on the outdoor channel advertising for hunters trying to get loans
 

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unsure what you mean by "this type" of purchase. 20% is the standard to avoid PMI (insurance).
only one that can answer this is YOUR BANK.
 

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maybe less down is ok for a property without a home on it, but you'd have to check with your bank to know for sure
 

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You are not required (by any law) to put anything down - it is entirely up to you and the seller what deal you make.
 

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Discussion Starter #5
You are not required (by any law) to put anything down - it is entirely up to you and the seller what deal you make.
This is good to know, the people that own the property are not using a realtor.

As far as "this kind of loan"what I meant was second property.

I will try everything possible, this is a great opprotunity!
 

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I believe it it is over a certain acreage even with a house it is considered farm property and requires a certain downpayment depending on the location. Not sure if I am remembering this right though. Deffinately double check with the bank.
 

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VA guarantees a loan. I had a hulluva time getting a loan for a vacant property. Had to wait to have enough equity on my house to use as collateral.
 

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Ask about buying an option....you buy an option to purchase at a certain price foe a certain time. In the meantime no one else can buy. You choose to let it slide, you lose the option money. Sometimes options are cheap. Do some math and make an offer.
 

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Discussion Starter #9
Thanks for all the responses. I will try every possible way. I will tell you it is and awesone deal 250 acers 4 bedroom cabin no electricity, but a well, they are asking only $125,000. It is way back in the woods (6 miles) the perfect place when the shft hits the fan!
 

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Do you have a lawyer involved? The reason I asked is I was in the same situation a while back. Found a perfect piece of land to buy. No realtor involved and the seller didn;t want to involve his lawyer either. At first everything was cool. A week before closing, after the deposit was placed I, for some reason, decided to contact my lawyer. He did his thing and in the title search found that all was cool except there were no mineral rights to the property. I couldn't even cut a tree if I had wanted too. An oil company had bought the mineral rights to the propertyand would not let go of them. As it turned out I got my deposit back but almost made a major mistake.
 

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Discussion Starter #11
Do you have a lawyer involved? The reason I asked is I was in the same situation a while back. Found a perfect piece of land to buy. No realtor involved and the seller didn;t want to involve his lawyer either. At first everything was cool. A week before closing, after the deposit was placed I, for some reason, decided to contact my lawyer. He did his thing and in the title search found that all was cool except there were no mineral rights to the property. I couldn't even cut a tree if I had wanted too. An oil company had bought the mineral rights to the propertyand would not let go of them. As it turned out I got my deposit back but almost made a major mistake.
Thanks I will not buy any property without my lawyer! (burn a very long time ago)
 

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You have a couple options available if you really want the property.

1. As you mentioned, tap into your 401k and buy the property outright. If it doesnt drain your funds, and you can afford to pay it back and not hurt your retirement budget, its a viable option. Since your retiring, you could always consider it a investment, or diversification of your funds into more tangible assetts instead of stocks. Depending on what your currently earning on that cash, it isnt a crazy idea, unless it drains your 401k. Plus, any interest you pay on it, goes right back to you in the long run. Just make sure you pay it back before you retire, or I think it would be a early withdrawl, and you be taxed to bejesus. But if its a loan on yoru 401, and pay it back before you retire, then there shouldnt be any issues of early withdrawl. Of course, check with your plan if they offer loan option, most of them do.

2. Check with your local COMMUNITY banks. I know in WNY area, Alden Bank or Akron Bank provide "raw" land loans with 20% down I think, or it could be 10%. I was looking into this option a couple years ago, so its worth a try checking with your community bank to see if they offer "raw" land loans. Not all banks do this, and the bank requires it to be in thier area. Plus the APR was high.

3. Land Contract - If your series, and can place a good % down, most owners will consider this if your willing to cover the legal costs, and give them a good APR on holding the note. Of course, I would reccomend a real estate lawyer, and do a serach on property to make sure the owner has no leins or judgements on property. As mentioned, I would never buy land without timber or mineral rights, and I would suggest to also encourage the owner your good fatih, is to stipulate that until the note is paid in full, you do not have the right to timber or mine property without owners permission, and as well, he does not have the right to log or mine property while your contract is valid and your not late on payments. Look at it this way, you could be some douchebag, buy a piece of land on contract, clear cut it, and then default on the loan or vice versa. The purpose is to protect his and your rights, cause nobody in thier right mind would sign a one sided contract.

I purchased property via a land contract, and had no issues with it. Its a viable option, and one worth looking into if options 1 & 2 dont work out. I think option 1 or 3 would be the best solution.

Good luck !
 

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No trying to be a smart a_ _ , if it is truely a great deal, post some belongings up for sale to fellow members on here to get the cash. Material items can be replaced.
 
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