I’m looking to buy a piece of land (Less than $ 15,000) to someday build my retirement home on. My real estate broker told me I couldn’t get a mortgage, but my bank (Wachovia) offers what is called a “Lot Loan”. Has anyone ever applied for one of these? Is the application process relatively painless compared to a home mortgage? I have one a mortgage, but not much equity yet)
The land I’m looking at is is rural land in NE Penna and it’s more than acre. some places aren’t as expensive as California or New York and there are lots of lots in Pa avaliable for less than $ 10k per acre.
I told the guy at the bank that I wouldn’t be building on it for many years and he didn’t have a problem with that. Only need 10% down plus closing costs – amortized over 25 yrs with 5 yr balloon where you can refinance for the unpd balance, but I expect to have it pd off in 5yrs
It’s definitely NOT a construction loan
Even though it’s called a Lot Loan, I am not looking in any town – it’s definitely country, rural land I’m looking at with no town bigger than 5000 for miles around, if even that populated