Down payment for land loan?

[lecialefty]

How much do you normally need to put down on a land loan? I thought it was 10% but can't remember. Would like to know before I start daydreaming too much :P

[venia]

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.

[Tommys_Mommy]

I mentioned in a conversation with a loan officer before that we would like to eventually buy some land and he said the same thing posted above about needing much more down since there is no collateral. It's been a while, but I am thinking he said 30+%.

[s@hmommy]

We had to put down 20%.

[silvaheyes]

Is it the same if you just buy land vs buy land and immediately building a house on it? Just curious as this is what we would like to do eventually.

[Pikemommy]

Just for land it was 30%.
Another option is to sign a contract with a builder. Many will buy the property you want and tie that cost into the cost of the build/construction loan/mortgage. This only works if you are planning on buying and building right away.