How Do I Get A Va Loan (or Any Loan) For 65 Acres In Texas?
I have been half-heartedly looking for a nice rural property (~20 acres with or without a house) for some time now. Today I finally stumbled across a very nice 65 acre piece of land for $130,000 (severely underpriced) and now I am scrambling to find a lender. I had not previously realized that my bank only grants loans for 10 acres and under. My realtor consulted 4 lenders and 1 broker, and was only able to find 1 lender who would finance up to 25 acres (she’s still looking). I am a veteran, so I figured that I would get a VA loan, but the Texas Veterans Land Board will only finance up to $80,000. I thought about one of those Farm Credit Unions, but I have heard that they only finance up to 60% or 70% and charge really high interest rates. I have a clever idea (so I think). What if I could convince the seller to divide the acreage up into 2 plots; one plot of 5 acres, and one plot of 60acres. He would charge me $128,000 for the 5 acres, onto which I would move a cheap mobile home and get therefore qualify for a land/home package loan. I could have a legal contract written up stating that he would sell me the remaining 60 acres for $2,000 (which I would pay out of pocket) contingent upon the successful closing on the 5 acres. This way I get my 65 acres and my VA home loan. It sounds too easy, so it’s probably the oldest trick in the book. Seeing as how I could just default on my loan the first month & still keep the 60 acres, it’s probably illegal. So, what are your thoughts?
How To Save On Your Mortgage Costs
by Graham McKenzie A mortgage loan is the largest debt most people will ever have.
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How To Save On Your Mortgage Costs