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Vacant Land for Sale in Michigan
Now is an excellent time to purchase land in Michigan. There has not been a period in our lifetimes better to purchase hunting land or to buy farm land. Property values have dropped significantly over the past few years and land loan rates are also very attractive. While there are few land loan lenders in Michigan, they are able to offer great financing programs.
Riverbank specializes in buying land in Michiganfor vacant land or recreation land. They offer loan terms up to a 30 year fixed with current land loan rates in the 5’s. Many clients choose to pay off their land loan within 5 years and can take advantage of a 5/1 ARM which is fixed for 5 years and then can adjust up or down thereafter. The rule of thumb is the shorter the length, the lower the interest rates so choose what is best for you.
3 Problems with Buying Land
Loans on land are inherently more risky for lenders because there is less demand for these properties. As long as new home construction is slow, many people are not looking to buy land that they can build on. If a land lender has to foreclose on a property then they may have a difficult time selling the land to recover their money. Land typically takes longer to sell than land with homes therefore many lenders do not offer land loan options.
Credit score requirements to purchase land may also be an issue if you have recent late payments or low credit scores. At Riverbank Finance LLC our minimum credit score is a 660 credit score to buy land or get a land mortgage but typically our investors would like to see higher credit scores. If your score is low you should do what you can to improve your credit score before attempting to purchase land. This will benefit you in the long run as you may qualify for lower land loan rates and have a lower payment to buy land.
The third issue with buying land is having money ready for a down payment. Currently most investors require 20% for your down payment to buy land. For example, if you are buying 10 acres of land for $50,000, you would need a down payment of $10,000 plus the costs associated with closing. For many land buyers, this may be an issue with affordability.
Owning land is an accomplishment that you can be proud of for years. As time goes on, the world population grows however the amount of land available stays the same. Some day we will run out of land and it will become our most valuable resource. Once you buy land it can be passed down for generations for your children and your grandchildren to farm or hunt.
No man but feels more of a man in the world if he have a bit of ground that he can call his own. However small it is on the surface, it is four thousand miles deep; and that is a very handsome property. ~Charles Dudley Warner
If you are interested in buying land in Michigan, do your research and visit Michigan Land Loans and give Riverbank a call at 800-555-2098 and get pre-approved for a land mortgage today.
Get preapproved to buy land in Michigan
Submit an inquiry below to get information on purchasing acreage in the Great Lakes State. A loan officer will send you information on qualifications for low down payment loans at low interest rates.