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Mark5
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# Posted: 9 May 2008 09:42am - Edited by: Mark5
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Hi all,
I was considering getting some financing to buy a recreational property and build a cabin there, however I have found that mortgage lenders are reluctant to lend money if property is not going to be your primary residence and recreational/occasional use instead. And if you find a lender, their terms (interest rates, etc.) are not that good.
Is that a generally true is it is just my experience?
It appears that best option for me is to use my unsecured line of credit and come up with cash for the remaining balance. Just don't want to miss the property while getting financing figured out.
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cizzi
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# Posted: 12 Oct 2008 06:30pm
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i've had the same porblem... banks dont care about vacant land in the woods or similar properties.. you'll get loan sharks lending you money at 30% interest rate.. ridiculous
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swanugly
Member
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# Posted: 12 Oct 2008 10:44pm - Edited by: swanugly
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i had to remortgage my house , but it turned out to be a good thing , i got a waybetter interest rate and now the property has gone up a bit in value .
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Anonymous
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# Posted: 13 Oct 2008 06:31am
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If you already own a home you can get a home equity loan (a line of credit). That is the route I am going. The interest rate on that is prime, currently about 4.5% or so. It's good if you don't need a large amount since the interest has to be paid monthly. But with any loan it is best to pay it off as soon as possible.
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nosfuerato
Member
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# Posted: 8 Jun 2009 10:22am
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I had the same issues in financing my place last year. The big banks wouldn't touch it but I was able to find local lenders that provided good interest rates (5.5% on a 15 year). You have to go local to get a good rate in my experience.
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Anonymous
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# Posted: 26 Feb 2010 04:14pm
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I tell ya what I done..
Placed a add i the county paper telling folks who I was and what I was looking for..
Had several folks contact me with owner financing options.
Had to weed out some fee starved realtors too,, but turned out nice !
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Anonymous
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# Posted: 26 Mar 2010 11:43pm
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I have bought a lot through Classic Country Land with a little down the intrest rate was not to bad.
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john41
Member
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# Posted: 13 Jun 2010 10:25pm
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Agricultural lenders will work with you on what they call "recreational property." They have good rates and the terms are competitive as well. I used the site www.landsofamerica.com to search for properties and found lots of links to lenders there. Good luck!
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toyota_mdt_tech
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# Posted: 4 Oct 2010 10:26pm
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I bought mine from a land company that just buys up farms, divided into 20 acre lots then sells. They had their own financing. Ours was 10% for 20 years, so I just paid $1000 a month and own it outright, had it paid off in 3 years. Then just saved and paid cash for our cabin, plus building it myself etc. You will have a hard time finding a lender unless it has a home on it.
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