Mothering Forums - Reply to Topic

Thread: Purchasing Raw Land Reply to Thread
Drag and Drop File Upload
Drag files here to attach!
Upload Progress: 0
Send Trackbacks to (Separate multiple URLs with spaces) :
Post Icons
You may choose an icon for your message from the following list:

Register Now

In order to be able to post messages on the Mothering Forums forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
User Name:
If you do not want to register, fill this field only and the name will be used as user name for your post.
Please enter a password for your user account. Note that passwords are case-sensitive.
Confirm Password:
Email Address
Please enter a valid email address for yourself.
Email Address:


Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.

  Additional Options
Miscellaneous Options

  Topic Review (Newest First)
10-29-2011 04:52 PM

There are land restrictions, though this land is considered "unrestricted" - as far a building codes, need for permits, that sort of stuff.  As far as the owner goes - no commercial pig or poltury farms, no commercial junk yards, limit of two homes per every 5 acres....reasonable stuff like that.  Our "owner" is a businees, so I think we're safe from those types of issues.  I have no idea if a bank would lend to build or not - we're looking to stay out of debt other than the property, so we didn't even check into it.

10-29-2011 03:59 PM

It seems pretty straightforward... since there's a legal contract, I guess neither party could just change their minds... does the seller have any input on what you can do with the land? There are no restrictions as there might be in a land rental arrangement? What happens if something happens to the seller (for example, passes away and his assets end up in probate or with heirs?). Does your contract over ride any of those types of issues? 


Also, if you go this route for the land, with a bank still give you a mortgage to build a house? Or do you have to have cash on hand to build already?

10-29-2011 03:18 PM

Yes, there is a legal contract.  I don't see a downside.  Bare land loans are hard to get, which this seller knows, and that is why he offers his properties with financing - otherwise he'd probably not be able to sell them (other than to cash buyer's).  Interest rates are based on how much, if any, money you put down.  With zero down the rate is 10%, and it goes down from there with money down.  The length of the loan can be up to 30 years, or shorter, depending on what you want your monthly payment to be.  It was a good option for us, we had the money to buy property OR build a house, but not both.  This got us onto our land with enough money left to and other issues have delayed us, so we're now putting a mobile on the land to live in while we build.

10-29-2011 01:55 PM

Okay, I see. How are the interest rates with that? I assume both parties would retain legal counsel and draw up a formal bill of sale and loan terms as well? It seems there could be some significant downsides to that type of arrangement, but considering the state of for-profit banking these days, there could also be some pretty good upsides. 

10-29-2011 12:52 PM

Owner carry/owner financing......the owner is basically the bank.  We didn't have to get a bank loan for the land, we make payments to the property owner instead.

10-29-2011 11:55 AM

What does "owner carry" mean? 

10-29-2011 10:11 AM

We bought our land with 100% owner carry so that we would have our cash to build with. But we're in TN, transplanted from Oregon, and I know it's much harder to find those kinds of deals out west. 

10-28-2011 04:52 PM

The best thing would be to ask your bank.  It could be that if it had electricity hookups available that they would finance it.  We had no such loan available, but dh's parents did write up a loan agreement.    These days a loan would be a far better place to park your cash than the bank, or even stocks.  So if you have a great relationship (a trusting one, too) with your parents or another family member that could be an attractive option.  Rate tables are available online for free.



10-28-2011 04:10 PM

We looked into this and we were told we had to be approved for a larger amount that would approximate the land plus infrastructure like getting the electricity, sewage and driveway and site preparation done.  We didn't persue it any further so I can't say more.  I'm also Canadian, so it may be different here.

10-28-2011 03:10 PM

Great question! Unfortunately, I don't have any info; just wanted to chime in and say I'm also interested in hearing how this works. We'd love to buy a couple of acres in a few years and build our own tiny house. 



10-28-2011 03:04 PM

Anyone know details about how it works?  I know unless your building immediately you probably can't get a typical mortgage.  We are looking to buy raw land, most likely financing it.  Then build a yurt or two and down the line build a forever house.  Except I can't find or get any info from someone how it works.  We are in Oregon if that makes any difference.  And thanks!

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off