Keep It Local. The lowest interest rates and lowest down payments are absolutely found with community banks and rural land lenders local to the property. Large metropolitan banks do not typically lend on rural land. That is not their market for loaning money. Financing rural property requires a lender that understands land and has a history of lending for land purchases.
Rural land lenders and community banks fund land purchases in their area and surrounding counties because they know land values and the demand and trends of land in their own backyard. That comfort and level of safety for a bank translates into lower rates, lower down payments and longer loan terms.
Many rural lenders currently prefer loaning on land over other assets right now- especially parcels that are improved in the sense of having utilities, current surveys, good fencing and ponds and lakes – a good indicator of the stability of land as their collateral.
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