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Old 02-05-2013, 12:38 PM   #2
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venia
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Re: Down payment for land loan?

We were going to buy land and drop a manufactured on it for our first home. My lender asked for 30%. I know some go as low as 20%, but the interest rate was higher. Some of the lenders wanted as much as 45%!!! There may be lower ones out there like through the USDA rural development program. We did end up with a USDA loan, but on a regular house with little to no land. We still plan to save up for our dream farm. Some day....


ETA: I remember the loan officer saying the down payment was higher because there is not as much collateral..IE bare land is harder to sell than a house on land.
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Last edited by venia; 02-05-2013 at 12:40 PM.
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