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Tuesday January 16th 2018

Anybody know how much you have to put down on raw land?

Hello my husband and I live in PA and are currently looking into purchasing vacant land to build our own home on in about 2 years. We would like to buy land now and make payments on it for 2 years before we build a house. We currently own a home. I have heard you have to put a certain percentage down but I cant seem to find any information on bank websites about land loans. Thanks!

3 Comments for “Anybody know how much you have to put down on raw land?”

  • tro says:

    what is the seller asking for?
    there is no specific %
    for many years(before the creative mortgage surge) one had to have 10% down for a home and their payments could not exceed 25% of their income
    this might give you some guideline but you are not talking a residence

  • kevc21 says:

    Ask a lender.
    Could be 25% of sales price or higher in these hard-to-get-a-loan days.
    Could even be 30% – 50%.

    If the seller will finance it for you, could be ZERO. They might accept payments. This is the difference between institutionalized financing and seller financing. Good luck.

  • godged says:

    In recent times, about 30% is typical.

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