Land or Lake Lot without structure…

  • jigging_jag
    SE Minnesota
    Posts: 203
    #1277490

    Wondering what the banks are looking for when asking for a vacation property or land loan? May it be percentage or money down. Does it matter if there is a structure on the property?? Thanks, JG

    Grouse_Dog
    The Shores of Lake Harriet
    Posts: 2043
    #1072298

    How much money you make.

    Your credit score.

    Appraised Value of Lot.

    25-40% down.

    Dog

    Calvin Svihel
    Moderator
    Northwest Metro, MN
    Posts: 3862
    #1072304

    Most bigger banks really are not into lending on vacant lots or lakeshore. They will do the lot loan but with a substantial amount of down, such as 50% and the bank will finance the other 50%. You are much better off going to a smaller bank or credit union vs. a big bank lender.

    big_g
    Isle, MN
    Posts: 22538
    #1072310

    See if you can go CD….

    TheFamousGrouse
    St. Paul, MN
    Posts: 11832
    #1072339

    – Down payment.
    – Income.
    – Employment history.
    – Credit score / history.
    – Appraisal value (NOT property tax value, actual on-site apprasial)
    – Comps – what similar properties have sold for recently.

    Before you do a lot of looking, go to your lender and ask to get qualified. It could save wasting a lot of time, because you may well find lenders either won’t lend at all or are demanding down payments of 20-50% on rec property.

    Grouse

    joe-winter
    St. Peter, MN
    Posts: 1281
    #1072353

    I got one for 85% of lake lot value. From Agstar. Its just a vacant lot without well or sewer. Lesueur County if that helps.

    stuwest
    Elmwood, WI
    Posts: 2254
    #1043683

    AgStar is well regarded around here for bare land lends, better than the other banks.

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