I just returned from PA.Where i found a piece of land that i am interested in buying.The price of the land is $109,000 what % would i have to put as a down payment.I will be building a house on the land in about 2 years.I have great credit and i make an OK living.I just don't have much cash to put down.Please any suggestions will be greatly appreciated

just returned from PA.Where i found a piece of land that i am interested in buying.The price of the land is $109,000 what % would i have to put as a down payment…..

Well, I do not know where you live, but I hope it is not too far from PA. I seriously think that contacting a local lender {as in local to where the land is located} is the best way to go about getting financing.

Your loan-to-value will depend on how “raw” or “developed” the land is. I really could not tell you a percentage, but my educated guess is that you will need at least 25% down payment.

You have to take into account that I am not a residential lender, but 75% loan-to-value seems about right or at least something that can be negotiated into. Remember that the lender will finance based on the lowest of purchase or appraised.

Good luck.

P.S: give a couple of banks some phone calls this week.

For a residential deal, our bank would probably look for at least 10% down for a subdivision, or 20% down for farmland/raw land/hunting land/etc.

If you live close enough to PA and have a relationship with a bank, I'd talk to them. Generally if a good customer (accounts with us, etc) is looking for a out of state regional deal we'd do it, but if someone is just shopping us, we'd pass.

If it's quite far away, expect more down and/or higher pricing. Of course, checking "local" PA lenders is also a good idea.