info on buying land, (financing and help with search) (agent, mortgage, mortgage)

[rugerjitsu]

hello,

i'm in the beginning stages of searching for land (<10acres) that has lake frontage. this would be a spot where eventually i would like to build a lake house. after a quick google search, i found plenty of websites, but not a whole lot of actual info.

what i'm unsure about is, how financing land differs from an actual mortgage. and who would be best to facilitate this purchase. would this be something that a real estate agent or land agent wouldn't be necessary?

if it helps, i'm looking in West Virginia and southern PA.

thanks!

[QuilterChick]

Originally Posted by rugerjitsu

hello,

i'm in the beginning stages of searching for land (<10acres) that has lake frontage. this would be a spot where eventually i would like to build a lake house. after a quick google search, i found plenty of websites, but not a whole lot of actual info.

what i'm unsure about is, how financing land differs from an actual mortgage. and who would be best to facilitate this purchase. would this be something that a real estate agent or land agent wouldn't be necessary?

if it helps, i'm looking in West Virginia and southern PA.

thanks!

It will depend on your financial situation. 10 acres with lake frontage anywhere will be quite pricey. Normally the markets where I've had land sales and listings, the land is paid for in cash, and then used as the down payment for building a home on that land and a bank might wrap it into a construction loan. Very few banks will give loans on just land; but I would advise you to check with your banker to see how creative they can be with your plans. If they even do lend on land, they will demand some very large collateral to secure a loan. If you are in the market to buy land in a different state than where you currently live, there will be other issues to deal with if you want credit to buy land only. (You might get better answers from a mortgage lender.)

[rugerjitsu]

thank you very much for the info! i had a hunch the lending would be a bit more difficult...but thanks again!

[AZJoeD]

Land requires a particular level of expertise. Most agents do not have knowledge of land. Some will specialize, try to find one that does.

Some of the things you need to consider include:

Access - will you have direct access or will your access be through someone else's property?
Right of Way(s) - Are there right of ways on the land you are purchasing that grants others access?
Easements - Are there recorded easements?
Flood Plain - Does the land contain flood plain?
Building Envelope - Is there adequate building envelope for you home and out buildings?
Is there water or if not how deep are wells in the area?
Sewer or septic? Will the ground perc for septic? Being near a lake will the county allow a septic or will a holding tank be required?
Has the land been surveyed?
Any environmental issues you need to know about?
What are the future plans for growth in the area.


Lots of questions, try to find someone with land knowledge or do your own research before you sign on the dotted line.

[DMenscha]

No lending institution that I know of is doing land financing anymore. There are private investors that will but their interest rates can be daunting. If you're looking in an area that has acreage, you'll probably find a real estate agent that knows the subtleties about the things that AZJoe mentioned in his post.

Given that very few are lending you may need to find a seller that will finance your purchase. They're out there. Good Luck!

[rugerjitsu]

this is exactly what i was needing...i'm a total newb at buying land, and i'de rather get my feet wet with information here than cold calling some salesperson and getting biased info on whatever they feel like.

sounds like i've got a bit of money to save up, but in the meantime i've got some research to do on where this land will be, and many other questions to answer after i find an area.

thank you very much...

[QuilterChick]

Originally Posted by rugerjitsu

this is exactly what i was needing...i'm a total newb at buying land, and i'de rather get my feet wet with information here than cold calling some salesperson and getting biased info on whatever they feel like.

sounds like i've got a bit of money to save up, but in the meantime i've got some research to do on where this land will be, and many other questions to answer after i find an area.

thank you very much...

Every state is different on environmental regulations for land. My best advice to you would be to take a surveyor with you and the county plot plan from the records in hand and walk the land with the surveyor. Sureyors are very savvy in beng able to tell you what "kind" of land you have there and will eduate you. Ledge, topography lines, what the "buildability" is and where you would site a home on it. Well worth paying a qualified surveyor to go with you on anything you are serious about. Some r/e agents specialize in selling land to developers, but the developer knows more than the agent believe me. A surveyor can also tell a lot about the land just by the type of trees that are on the parcel; and will also be able to draw up a metes and bounds description of the parcel for you if not already available. If you are going to build on it, in most states there is only a certain time of the year that a "perc test" (for water table, and placement of a septic system) can be performed; and land cannot be sold for building purposes without one. Most are good for 3 or 4 years, varies by state. Fascinating segment of the real estate business. Best of luck to you, sounds like a nice project you have in mind.