How to: Buy Land, Build a home

Aggie Planner

Joined: Jul 17, 2017

Posts: 19

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6:48p, 2/13/24

AG

My wife and I have plans to buy and build within the next few years. +/- 10 Acres. I've been consumed by my research with no real direction of how the process works for something like this. Every resource I visit just seems to want me to signup for newsletters or call someone. We have a home we would sell, but prefer to do it after the new house is built.

Is a land loan the only option if we don't have hard plans to build within a year?

Would it always make sense to wait to buy and build together?

What have you guys seen/done in the past?

TIA

FILO505

Joined: Jun 8, 2009

Posts: 2,144

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In reply to Aggie Planner • 6:56p, 2/13/24

AG

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Chewy

Joined: Dec 5, 2001

Posts: 15,771

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8:58p, 2/13/24

AG

Depending on what you're looking for the hardest part is going to be finding the land if you want something unique. It ain't easy and it ain't cheap.

A lot of people are looking for this sweet spot.

We bought 11 acres in November of 2022 and about to start building a barndominium.

We initially did a land loan through Capital Farm Credit and now the construction loan through Rural 1st via Cap Farm. They're affiliated to a degree. Rural 1st paid off the original land loan and now we owe Rural 1st for the whole shebang.

We didn't know our timeline when we bought the property but accelerated it once we started enjoying it.

It's a weekend place for us.

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lobopride

Joined: Jul 17, 2019

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6:58a, 2/14/24

I just bought 50 acres in the ozarks. Just doing a land loan for now. I think we will just let the property sit until we pay the loan off.

I am a slave of Christ

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jja79

Joined: May 24, 2002

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9:58a, 2/14/24

AG

You can close the land purchase as part of a one-time close construction loan but it's not required. Typically the terms are slightly better using that option.

If you find the right piece of property it would seem better to move on that rather than wait.

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leighann

Joined: Sep 14, 2020

Posts: 62

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3:07p, 2/14/24

AG

My goal is to pay for the property, then put a used mobile home on it until we can cash flow building the house.
Interested in how others have done it, especially with different interest rates.

Red Pear Realty

Joined: Aug 2, 2018

Posts: 3,433

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In reply to Aggie Planner • 4:37p, 2/14/24

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AG

My contact info is in my profile. Shoot me a text and I'd be happy to jump on a call with you and discuss. I buy land regularly and am happy to give you my take on financing.

Sponsor Message: We Split Commissions. Full Service Agents in Austin, Bryan-College Station, Dallas-Fort Worth, Houston and San Antonio. Red Pear Realty

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CapitalFarmCredit

Joined: Dec 16, 2012

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11:34a, 2/20/24

Sponsor

We can help.

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