All,

Where is the best place to get land financing done? This would be for raw property with maybe additional money for a pole barn to be built. I know at least 20% down and higher rates will be encountered. I'm just curious if I should stick with credit unions or look for regional farm type specialty financing boutique lenders.

around here, 65-70% is what the couple of places that do raw land loans will pay, so buyers are looking at about 1/3 down.  One bank does raw land, the other is a credit union.  Sometimes owner financing is a better choice, with better terms

My wife and I had plans to do this exact thing this summer.

10-20 acres. Possibly cash/loan/draw outta my annuity.

Current events have stalled the “search” but not the desire!

Check the local bank where the land is. I got a good deal for my house ( i know its not raw land) but the local bank beat the big credit union on rates and terms. Raw land will need large down payment, not sure 20% will get it. ALso if your looking at raw land and plan to build a house with septic and well, youll need perk test down prior to buying it. If it dont perk, you dont get county permit to put septic system in, etc.

Unless its a killer deal, id look for land that has atleast well and septic in place. Many ppl will start their builds and run outa money, but the electric, phone, septic and well may be complete.

I just bought 12 acres that joined my home place and used Alabama Farm Credit.

20% down, 5% interest... supposed to get a divided check every that would equate back around 1% of the interest.

I used a local bank 6 years ago to buy 19 acres. 10% down.

Check with local builders. That’s how I found the bank I used. I live in a small rural-ish town.

I should have clarified. I’m looking at at least 50 acres, potentially 100, in various parts of the state. I’m not tied to one area. I was really looking almost for prequalification before conducting a serious search, if that makes sense.

Thanks for the input thus far.

Try Farm Credit Mid America, I have had 3 loans from them and they have been very easy to work with. They do land loans and rural property loans. The name for land and smaller lots has changed to Rural 1st.

Edit to update name

I found a local bank in the area where I bought the land. 20% down, 10 year loan, 2 points higher than typical mortgage rate.

Look for a Farm Credit type bank or credit union.  Typical banks only want home mortgages / construction loans so you probably need to avoid them.  We've been looking for land for 2+ years now, just looking for the right amount, in the right "area" for the right price.  Our lender is 10% down, they'll finance 90% for 10 years.

If you need a realtor make sure you have one that specialized in land purchases.  Our lady is awesome.  She pulls up stuff on her computer, sends it to us.  Has maps of soil reports, topography, flood zones, city limits (which we are making sure we stay out of), school zones, etc.  She'll find the comps for land purchases which you'll want to help determine the going rate.  She can also look up nearby wells, with info on how deep they go to find water, etc.  

You also need to verify any easements, but I'm sure you knew that.  Lots of oil/gas pipelines out here.  

Mineral rights out here in Oklahoma rarely come up with land (at least in the area we are looking at).

Also, consider setting up a trust to buy the land, just to remain a little anonymous (keeps your name off the county assessor).

What's your exit strategy?  Raw land can be hard to sell.  We've had a raw acreage parcel that we ended up selling after deciding we wanted more acreage.  I bought the acreage in 2001 for $40k.  I spent $4k having a road cut onto it, culverts installed and other earthwork in preparation of building a house.  Decided to not build on it because I wanted more acreage.  It took two years to sell and we sold it for $36k before the $3k realtor fees.  This mean we lost $11,000 on the property.

Since we've bought a house on 11 acres, but sold it because I wanted more land.

The next time around we'll just pay cash for the land.  I recommend you do the same.  Having debt on real estate that isn't very easy to sell isn't ideal.

Great story! I'm glad you found your dream property.  Our search continues.  I'm 22 years into my search for the 'perfect' property.  I'd be content with 40 acres but would prefer more.