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An employee is trying to buy a small parcel of land on the edge of town.
6ac, undeveloped raw land to move her mobile home onto.
She has a car note, a house mortgage, a small credit card bill. She is doing OK, never missing payments, paying it all down well.
Her monthly payments for the above divided by her gross income is right at 0.4..... ie 40% which is what one bank told her is important.
She has had discussions with various banks, one said no. They won't do undeveloped land.
Another said OK, but only 50% of the lower of Appraised Value or Agreed Price, which she can't swing right now.
Another will only do it if daddy co-signs, a trap I suggest she avoid if possible.
Another will only do it if she agrees to build a 'real' home within 7 years. (I liked this one... she might could pay it off in 7 years and forget about the restriction).
The last bank is on board - with a good rate, 20% down, but they want a guarantee of water. (its outside city limits)
I told her to mark on a plat of the land where the nearest 10 wells were, and how deep they are, and then get a letter from the only water-well driller around to say they drilled good water in all those wells, and have not drilled a dry well in 20 years in a radius of 10 miles to show the banker. I doubt the seller will guarantee the presence of water and will just find another buyer.
Any ideas to push the land sale through are welcome, she is a good kid and I want to help her.
6ac, undeveloped raw land to move her mobile home onto.
She has a car note, a house mortgage, a small credit card bill. She is doing OK, never missing payments, paying it all down well.
Her monthly payments for the above divided by her gross income is right at 0.4..... ie 40% which is what one bank told her is important.
She has had discussions with various banks, one said no. They won't do undeveloped land.
Another said OK, but only 50% of the lower of Appraised Value or Agreed Price, which she can't swing right now.
Another will only do it if daddy co-signs, a trap I suggest she avoid if possible.
Another will only do it if she agrees to build a 'real' home within 7 years. (I liked this one... she might could pay it off in 7 years and forget about the restriction).
The last bank is on board - with a good rate, 20% down, but they want a guarantee of water. (its outside city limits)
I told her to mark on a plat of the land where the nearest 10 wells were, and how deep they are, and then get a letter from the only water-well driller around to say they drilled good water in all those wells, and have not drilled a dry well in 20 years in a radius of 10 miles to show the banker. I doubt the seller will guarantee the presence of water and will just find another buyer.
Any ideas to push the land sale through are welcome, she is a good kid and I want to help her.