buying a second home, with land

[MoBuckChaser]

Sorry, the banks will not tell you what properties you can buy. They will tell you borrowing "ability". They will tell you what you are qualified to borrow based on assets, credit rating, and income. They will look at your debt:equity ratio and ability to provide collateral based on the loan you are requesting and the risk it presents.

Once you present an item you want to borrow against, they will evaluate it's value. Realize that banks differ in how they go about this. Some are into adding debt, some are looking to shred it.

Many banks these days are themselves over extended on their D:E ratio and are looking for risk free loans. Has nothing to do with the borrower.

I would look for a local community bank. They are usually more solvent and understand the local economy, real estate market, and need to move money and property. Usually they know they have to help those who want to sell, so they can pay off a mortgage, by providing financing to those who want to buy.

Bueller ... good chance this bank is trying to add a positive asset to their base by forcing you to put more cash down than you need to. I would shop around ...

Sorry Spud, but the banks will tell you what type of properties they will lend money on and what type they won't. Get your facts straight!

 

[Tree Spud]

Sorry Spud, but the banks will tell you what type of properties they will lend money on and what type they won't. Get your facts straight!

Wow ... I have never had a bank tell me what property I could or could not buy. I once purchased 80 acres of marsh that was non-buildable and financed it.

Banks move money and pay an interest rate to the Fed. That rate will vary depending on their liquidity. It will also vary on the LTV ratio that banks carry.

At the end of the day, Banks really don't care about what you are buying, they care about the appraised value of the asset, down payment (% of collateral) & ability to pay back the loan, and the interest they can charge based on risk.

MoBuck ... if your facts were correct, the stock market would not exist, nor would the credit card industry.

Sounds like you are telling Bueller he is not a good risk. I assume he is and has gone to the wrong bank ... difference of opinion ... Banks also want to know if they have to repossess an asset, does it have value? That is why a local lender is a better choice.

 

[MoBuckChaser]

Wow ... I have never had a bank tell me what property I could or could not buy. I once purchased 80 acres of marsh that was non-buildable and financed it.

Banks move money and pay an interest rate to the Fed. That rate will vary depending on their liquidity. It will also vary on the LTV ratio that banks carry.

At the end of the day, Banks really don't care about what you are buying, they care about the appraised value of the asset, down payment (% of collateral) & ability to pay back the loan, and the interest they can charge based on risk.

MoBuck ... if your facts were correct, the stock market would not exist, nor would the credit card industry.

Sounds like you are telling Bueller he is not a good risk. I assume he is and has gone to the wrong bank ... difference of opinion ... Banks also want to know if they have to repossess an asset, does it have value? That is why a local lender is a better choice.

OK

 

[bueller]

update... Closing is set for next Friday :D. We got a 4.8% fixed rate mortgage for the property and garage. And a second un-secured loan for $15,000 with a 5% variable rate for 7 years. We got the second loan because with the bank not giving any appraisal value to the home we would have really been stretched to come up with that kind of down payment. We still are putting down a healthy down stroke but we will have some cash reserve left and our monthly payments for the first 7 years will be in the ballpark we projected when we started this process, and lower than that afterwards. Fingers crossed for another week.

 

[wiscwhip]

Good luck bueller, looks like you might have a new stomping ground for the upcoming rut and gun season!

 

[Tree Spud]

Bueller ... good luck!

 

[foggy]

Good luck on the purchase!

 

[gwm]

Good luck bueller. It will all work out for you.

 

[gstrom99]

Congrats! I bought my playground with "cash" via home equity loan (right before the bottom fell out...), and just paid it off this spring. No structures at all ('cept the camper I planted there).

Pics?

 

[bueller]

No pics to share yet, but there will be plenty forthcoming. I'm really looking forward to starting with a clean slate and being able to operate without my Pops' constraints. I really wish we had taken more photos early on of his place before we made the improvements we did. Won't make that mistake this time.

 

[Tree Spud]

Bueller ... people have asked me what is it like to have a vacation home ... ?

I ask them ... Yes, we have a home ... Ask them is it a lot of work ... Yes, it is a lot of work ...

I tell them it is now x2 ... enjoy the journey and don't focus too much on the destination ... many family & friends memories ... some heart ache ... it's all good!

 

[MoBuckChaser]

There's nothing like having to ask no one about what you want to do on a chunk of land :D Most of the locals around me think I'm nuts for hinge cutting "that's some good firewood on the ground", "what the heck are you doing leaving those trees looking like that, it's an ugly mess"...

Take lots of pics, not only to share with us but to remind you of how it looked "pre bueller"

Yep, my neighbor here in Missouri, (the beer vac), just rolls his eyes at how my woods looks. He thinks I am nuts to cut all the trees and lay them over without cutting them up. But man does it work!:D

 

[bueller]

A big THANK YOU to everyone who helped out and shared their knowledge and experience on this thread. We closed the deal on Friday. We are now the proud owner of a manufactured home with garage on 23 acres, located a short 2 minute car ride from my Pop's 40 acres. This is an upgrade from the 27 foot travel trailer we called home for the past 7 years. We also had no outbuildings prior to this. It will be super nice to have 2 properties to hunt and manage the habitat on.

I knew very little about purchasing prior to this and walked my way through it with the assistance of several greats posts on this thread. It sure was nice to be able to ask people who had the knowledge and experience and were willing to share it. THANK YOU AGAIN.

 

[Tree Spud]

Bueller ... CONGRATS!!!

Sounds like a great place to get away to and being close to your Dad will be extra special for you and the family to spend time with him.

 

[Jim Timber]

What's the plan for the travel trailer now?

 

[bueller]

What's the plan for the travel trailer now?

I want to clean it up and sell it next year but the wife wants to keep it so we can take the kids to campgrounds a couple times a year :confused:. In the meantime it will stay on my Pop's place and act as a shelter/hangout during hunting seasons. Hey if the weather is poor enough it may even become a blind :D.

 

[wiscwhip]

When is the land tour and "field" day?

 

[Jim Timber]

If it's in the way, I could probably find a spot for it. :D