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 Lender suggestions 
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Location: Nisqually Valley
Joined: Wed Oct 5, 2016
Posts: 4834
Anyone have any lender suggestions for raw land?


Tue May 24, 2022 8:00 am
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Location: Oly
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Are you going to farm it, or is this to make into a residence?


Tue May 24, 2022 10:13 am
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Location: Nisqually Valley
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Stokes wrote:
Are you going to farm it, or is this to make into a residence?


Most likely set aside some for residence and put the rest into timber tax.


Tue May 24, 2022 6:09 pm
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Location: Lake Stevens
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Back in the day, we ended up using First Horizon Home Loans.
Getting a loan on land can be tough and be prepared to put a good chunk of the purchase price in cash as well.
Back in the day we bought for $165,000 plus closing costs and ended up with a loan of $116,000 (i.e. something like $65,000 down.)
That was in 2005 so not sure where the rules have sent the lenders but your choices are likely to be limited and don't expect a low interest rate. Raw land unless it's in a highly appreciating area is tough to get rid of for the banks if they have to foreclose. So they tend to have higher rates to cover the risk and demand more up front to spread that risk.

I would look online and search for those willing to do land only loans. Then start reviewing.
Pretty sure the guys we worked with the last two times could fidn a lender to do it. PM me if you want their info as I will need to go look it up again!

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Tue May 24, 2022 6:59 pm
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Location: Nisqually Valley
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So far Im looking at 25 percent down and about 8-9 percent rate.

The other option is pulling a cash out refi on my current place since its paid off and it would be about 5percent.


Tue May 24, 2022 7:33 pm
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Location: 40 acres of 2A sanctuary
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I used Northwest farm credit 6 years ago for my raw land purchase. They only required 20% down. I don’t know about the current interest rate. Raw land, farms ect… is what they do.

https://www.northwestfcs.com/


Wed May 25, 2022 7:18 pm
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Location: Duvall
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This is a recommendation for a friend of a friend. I haven't done business with her, but Tom (who's a fiduciary), speaks highly of her:

Quote:
Hi David,
Great to hear from you. I don’t actually have land loans, but I do have a recommendation for a land loan. Her name is Magara Potts from Washington Federal Savings Bank in Bellevue. She is terrific and would be happy to help your friend with his land loan

Keep in touch.
Cheers!
Tom

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Fri May 27, 2022 10:48 am
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Location: Washington
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Real Name: Hunter
Land for farming or for what purpose?


Sat May 28, 2022 11:09 am
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