First time home owner loan questions
Working on buying my first home it's a 40 acre acreage here in nebraska. It would be ideal if I could find a loan where I could borrow 100 percent of loan with no down payment. I have done some reserch and there is FHA loans out there that will allow this I believe also even is think there's some usda loans where you can wrap up closing costs and repairs in loan to but I believe none of these accept much over 10 acres. Any help would be very much appreciated! by Cody06559 from , Minnesota. Jan 15th 2014
Nope gunna stay in good ol nebraska not sure y it says in Minnesota. Thanks for the info tho. I went and talked to the bank and they told me they could get the FHA most likely but would have to have 10 acres surveyed off and with house on it and just submitt that for FHA loan then for the rest do another loan from the bank wich I really dnt wanna do. The land has 20 acres in row crop as of now the rest is house and out buildings etc.
David Ortega (DavidOrtega)
#51 ranked lender in Minnesota - 231 contributions
Hi Cody, USDA generally does not like much acreage though, it's less about the acreage and more about farming activity. USDA is a 100% financed loan. FHA requires 3.5% down payment but, the down payment can come from a down payment assistance program or a gift. I see you submitted your question while in Minnesota. We're based and licensed here and in Florida. Though, we're not licensed in Nebraska as it appears is where you'd like to purchase. If I'm mistaken and you're looking to purchase in Minnesota, I'd love to speak with you. dortega@satorimortgage.com or 952-544-1706
Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions
Cody, the large acreage and farming use will be an issue for any residential loan. If it were just 10 acres with 0 or only incidental farming use you could probably get 100% financing if you meet the guidelines for the USDA loan. FHA is 3.5% downpayment but it can be a gift. Otherwise you'll need a different type of loan and most likely a larger downpayment... Good luck!
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Your not going to find any conforming loan that would allow you to purchase a 40 acre property, especially a first time home buyer.. if you have sufficient credit history, and income, then your local banks might consider lending on this property type, but it would never be at 100%.. Don't take this wrong, but a lenders standpoint is going to be "you need to learn to crawl before you can walk". As a first time home buyer, go buy a home.. later, when you have established a good history, then consider purchasing acreage.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com
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