Looking to buy a lot, to eventually build a new home on. The lot is $47,500. I've got about $10,000 for a downpayment.

The kicker is I do not plan to start building for another 5 years or so. I've heard getting a land loan is pricier (interest wise) than if I were to just immediately begin to build and get a mortgage.

My reason for waiting is because I'm currently living in a home I have completely paid off. I would like to have the land paid off by the time I start to build on it.

Anyone have any insight on how I should approach getting a loan for this situation? Or what I should expect as an interest rate? My credit is in the 740-750 range.

Any help is appreciated!! Gig em

The shorter the term, the less the rate will matter.

Others may have better advice but you might try a small local bank. I recently got a low paperwork, 4 year, 10% down, 4.5% loan from one of the local College Station banks to purchase a lot. Pretty painless and it sure is nice to see the loan balance fall so much each month.

A HELOC for $47,500 won't have any closing costs and will have reasonable rates. Easy way to finance this purchase.

That is a good point!

The main reason is my wife will be out of school by that time and working full time. With both of our salaries taking on a new house note won't be a problem at all.

I could pull it off with just my salary, but it would be tight and I would hate to add that stress when I have zero notes right now.

I would agree with JJA. HELOC on your current primary loan would be quick and easy as well as cheaper then a lot loan.