Financing Land

[AlanB]

I am late in the game, but I had to go farm credit to get my house, it dropped out of the "third party mortgage system" that most banks use.

Getting steered to farm credit was one of the best things that has happened to me though. Even though they are not in my town, I can call and they know my name, and really help and take care of me, and do it at great rates, with a smile and a minimum of hassle.

And what you are doing, is what they deal in every day.

 

[randy41]

it will get more difficult to itemize as time goes on as congress sees the standard deduction going up=tax simplification. and also when you itemize you may have to deal with the (the following 3 letters should be avoided by those easily frightened) AMT.

 

[dmccarty]

When we bought our land we got a commercial loan. The Credit Union was useless. They where not helpfull with the construction loan. All of our bank loans are now with a big bank. We still have accounts at the CU because of convienience. The bank has been very easy and helpful. We had problems with a certain loan officer who is no longer with the company. But the bank handled the problem and our other business very well. And we have delt with several differant branches, managers, and employees. We have had very good service. Scary good sometimes since its so unexpected these days. Kinda thought a CU was supposed to act this way.... Not a big business.

At the time I did not know about the NC Farm Bureau so I did not go to them for a loan. We do have almost all of our insurance with them. The agent knows us by name. Is local and helpful.

Later,
Dan

 

[EddieWalker]

Dan,

I've also had nothing but problems with Credit Unions. They seem to have more rules and less helpfull employees. I'm trying to resolve a problem with one right now, and as soon as it's done, I'm done with them. That's the third credit union that I've been a member of, and probably the last.

Eddie

 

[CharlieTR]

Not sure about your state, but here is Texas we have Land Banks.
Each Land Bank handles only certain counties. That is likely same as the Farm Credit. They loan for all that is land and farming. Texas has some odd law about mortgage loans and regular bank won't loan for land.

 

[TimC]

I went to AG South, and sat down with the Vice president and discussed the deal. It's a go with only 15% down, 6.25% for 20 yrs, and reasonable closing costs. Thanks so much for the heads up, this is looking great!
Tim

 

[SnowRidge]

Great! That's real good news.

 

[AlanB]

Too Cool,
Sounds like my experience, the banks were having conniptions, Wanted my to post bonds, cleanup stuff, have 3 mold remediation folks ad infenum ad nauseum to give me a commercial loan. To say I was gunshy was an understatement.

I sent all the info, pictures, appraisals notes etc to Farm Credit, Gave them a day to review, and very tentatively spoke with the loan officer and just asked if he had seen the mold and if it would be a problem. He said something to the effect of "its a farmhouse, you do plan on cleaning it up don't you?"

And it just got better from there.

 

[TimC]

I figured I'd post a picture or two from my scouting trip. The property has a private road that is an easment for two other properties that cuts through the edge of the lot. The first picture is just turning up the private road onto the property.

The second picture is of the "house". Every picture of the outside looks great, but inside it's a mess, and has no indoor plumbing. I'll probably use it as a place to store materials and maybe set up a air mattress if we're going to stay the weekend up there.

The third picture is looking back towards the road at the possible view. The property is mostly directly behind me as I am taking the picture and has several homesites that are 60-80 feet vertically above the level of this picture. Should have great views!

Hopefully will have everything going in the works by the end of the week, because Lydia and I will be married Saturday and off to Costa Rica for the week!

 

[rgood]

6.25 is a good rate ! Thanks for the update - Good luck on the closing.

 

[riptides]

I
The second picture is of the "house". Every picture of the outside looks great, but inside it's a mess, and has no indoor plumbing. I'll probably use it as a place to store materials and maybe set up a air mattress if we're going to stay the weekend up there.

Hey THAT looks like a keeper. Much better than mine, and we "restored" it.

Har Dee HAR har har...... Get a bulldozer and don't look back! If you plan on "renovating".

-Mike Z.

 

[HickoryNut]

My farm credit agent expertly worked out some easement issues on the property I bought that I expected to cause the deal not to close. She also got the timber tax assessment removed that I didn't even know about along with educating me on a couple of money-saving insurance and tax tips.

Pretty place, good luck!

 

[rgood]

I just got the below chart from bankrate.com - I realize interest rates vary depending on the type of loan etc - But who knows how Farm Credit gets their money? If they get it at the current Fed Disc. rate of 5%, then they are in making 1.25 %

Any thoughts ? The reason I ask is I was comparing farm credit rates to bank rates when I was supposed to close on 11 acres I'm buying and the local bank rate was lower - However, that was in back in July and due to bureaucracy, we still have not closed on the land.


Prime rate, fed funds, COFI Updated 10/31/2007

Sorry I can't get the table to line up properly but I'm sure you can see what it says



This week Month ago Year ago
WSJ Prime Rate 7.50 7.75 8.25
Federal Discount Rate 5.00 5.25 6.25
Fed Funds Rate 4.50 4.75 5.25
11th District Cost of Funds 4.383 4.359 4.382

 

[jinman]

Hopefully will have everything going in the works by the end of the week, because Lydia and I will be married Saturday and off to Costa Rica for the week!

Well, it would seem you have several reasons to celebrate. Good luck and CONGRATULATIONS! Remember to post some wedding photos when you get back.

 

[Sigarms]

I've also had nothing but problems with Credit Unions. They seem to have more rules and less helpfull employees. I'm trying to resolve a problem with one right now, and as soon as it's done, I'm done with them. That's the third credit union that I've been a member of, and probably the last.

Since you're prior service, have you tried any of the Federal Credit unions that you were entitled to join?

For myself, they are/were great to work with as far as rates on anything (particularly used cars) and they seem easy to work with, and really can't remember having an issue with them, unlike some of the other "credit" people I've worked with (like just trying to get a dang person on the phone to actually talk to).

However, they (Federal credit union) were the ones who originally would load me whatever amount of money I wanted for a house (at a great fixed rate), however, once I went over a certain amount of land with the house (like 5 acres or so, I forget the exact amount), then they didn't want to touch the loan with a ten foot pole. One reason why and how I found about about the Farm credit people.

My loan officer at the farm credit union still knows me although I don't see him at all, and I still get invited to their company picnic each year. Good/nice people to work with.

 

[AndyMA]

Looks like a great place. Enjoy

Andy

 

[MossRoad]

Farm Credit Services were the ones that put me in touch with the manager of a Savings and Loan to get those blanket mortgages that I mentioned when we purchased our 20 acres of vacant land. Nice folks.

 

[TimC]

Well, it would seem you have several reasons to celebrate. Good luck and CONGRATULATIONS! Remember to post some wedding photos when you get back.

Thanks for the Congrats! Ask and ye shall recieve the pictures!

She would probbably love telling you guys that SHE's the one that taught me to drive a tractor....

All seems to be progressing towards closing well so far. We can't wait!

The new property also has us needing a bit more tractor (awww.... shucks!), so we're currently trying to sell the TC18 for a Kioti CK25 or 30. Between buying Land, Tractors, and getting married, how are we supposed to fit in time to work to pay for it all?

 

[jinman]

Thanks for the Congrats! Ask and ye shall recieve the pictures!

She would probbably love telling you guys that SHE's the one that taught me to drive a tractor....

All seems to be progressing towards closing well so far. We can't wait!

The new property also has us needing a bit more tractor (awww.... shucks!), so we're currently trying to sell the TC18 for a Kioti CK25 or 30. Between buying Land, Tractors, and getting married, how are we supposed to fit in time to work to pay for it all?

Congratulations again. You certainly got the best end of that deal.

Just kidding. You make a very handsome couple and it seems you share a lot of the same interests. Nice setting for you wedding too.

 

[MarkV]

Congratulations Tim. Pretty wife, pretty land and a new tractor coming, life is good.

The little cabin looks as if it can be salvaged. With a septic and some power you would have a nice get away for now and a guest house if you ever build there.

MarkV