# What loan terms did you get for hunting land?



## famdoc2892 (Nov 20, 2009)

I have the opportunity to purchase a 40-acre tract for hunting at about $3500/acre.  For any of you that bought hunting land recently, what terms did you get?

Not looking for your specific information (unless you want to PM), just an idea of how many years did you get it financed and about what percentage of the total cost your payment is each month?

On the plus side, if you can help me figure it out, there may soon be a brand-new hunting club to advertise in Chattooga County!


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## bigjoe061 (Nov 20, 2009)

It is hard to say, but a year ago the loan interest rate on undeveloped land was 10%. Banks and other lending organizations are really afraid of raw land.


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## mossyback8874 (Nov 20, 2009)

Standard would be 20 year amortization with anywhere from 20% to 35% down.  Interest rates on these type deals vary widely.  A fixed rate would probably be anywhere from 6.5% to 8%, with a 3 to 5 year term.  Most banks are setting floors on variable rates at around 5-6%.


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## hevishot (Nov 20, 2009)

you will be very lucky to find anyone to lend on raw land....and if you do, be ready for a fat down payment.


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## famdoc2892 (Nov 20, 2009)

*Thanks for the help!*

I appreciate the information, looks like to get a fixed rate you'd need to be in a position to pay off an average "home mortgage" in 3-5 years!  Have I got that right, or are you talking about re-financing every 3-5 years to pay off in 20 years?

Any idea what the standard term for a variable rate is these days?

Thanks again for sharing your experience!


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## Steve Thompson (Nov 20, 2009)

Down payments are ranging 25% - 40%
 in Green & Morgan

You need to talk to a loan agency in the same county or near the land.


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## aewhite (Nov 21, 2009)

I have mine financed through a local bank @ 7% with a refinance every 3 yrs. kinda a gamble cause nobody knows what the interest will be in 3 yrs.  I could have financed through agsouth with a fixed interest rate for up to 20 yrs.  with 15% down but was goin to be 9.5%. but you can get a fixed rate on land only just have to look for more of the ag related businesses. Not sure but I think Farm Bureau will make fixed rate loans for upto 20 yrs. also


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## K80 (Nov 21, 2009)

AgSouth and AgGeorgia both in the Farm Credit family are lending money.  Look at needing 15% to 20% to put down.  Expect a note to be along the lines of a 3 year loan with an amortization over 20 years, this may have changed since I last heard about their terms.  Interest rates should be between 6 to 8 percent.  Between those two, where you live and where the property is located will determine which of the two you can use as they have territories that don't overlap.


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## dbodkin (Nov 21, 2009)

I'm sort of in the same situation.. I've retired and will be looking for 40-60 acres in middle-South GA.  If I can get a good deal on price per acres I would be able to put down a large down payment.  Or even buy outright.  I plan on not only hunting but to live there. A small log home.  My concern is taxes... Especially if we build a house...


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## Luke0927 (Nov 22, 2009)

Sorry to Hijack, but it could go along with this

I'm in my early 20's...I will be building a house this spring but my goal withing the next 5-8 years is to buy me a small piece.  I do not do debt except for what will be my mortagae on my living house I plan on saving up to pay cash for a 30-50 acre tract thats raw land....I have most of the equipment to do cutting a roads, food plots etc....

at first I'll probalby have to put a camper, then I would like to build a nice 1 room hunting cabin on it.....It will be paid for I'll use it enjoy it and hopefully sell it and then roll that into another property....I plan on doing this till I can get me a nice 100-150 acres.....Might take me a little while but well worth not going into debt over it....just my thoughts and plan on how I hope to own my own hunting land.....I figure by doing it this way could could sell a nice piece of property thats ready for someone to just come in and plant and hunt....would be prefect for 1 person or family hunting land.....

Does anyone do this or something similar?


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## fishingtiger (Jan 2, 2010)

15 years through ga farm credit at around 7%. 20% minimum down payment.


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