A lot of people are finding out the hard way that it’s difficult to get the financing for a lot of vacant land.
- Maybe you’re a millennial who is struggling to make ends meet, but you have thought that buying a piece of land would be a good first step towards home ownership.
- Maybe you’re trying to stay out of debt and you just want a small vacant lot where you can put an approved mobile home while you save up for your dream home.
- Maybe you just want an investment property for down the road when you’ll use it for something.
Whatever the reason that you want to buy land, you’re making a fabulous decision! However, you’ve probably already encountered the problem that conventional systems are not set up to make it easy to buy land. In fact, it’s much easier to get approved for a loan on a standard home that maxes you out financially than it is to buy a relatively inexpensive piece of land. Banks often find it more risky to lend $50,000 to someone to buy a piece of vacant land than to lend $250,000 to someone to buy a home in town—even when the terms of the bigger loan are 3% down and you’ll barely be making your mortgage payment every month.
As counter-intuitive and frustrating as this is, you’re not going to undo the system by beating your head against it. So how do you work within those restraints to get your land? Here are three of our tips for how to buy land in Texas.
1. Hustle to save as much as possible
Let’s face it. It’s harder than ever to save the kind of money that it takes to get a down payment together. But if you’re going to realize your dream of owning land, you’ll need to accumulate at least some savings. The people who get uncommon results are usually the ones who put in uncommon effort, and for most people, it will take nothing short of uncommon effort to save thousands of dollars. So get your game face on, learn to deny yourself in the short-term in order to get a bigger long-term reward, and start making career choices that will lead to your prosperity. This is a hard battle for everyone. But in 2018, it’s still possible to make it work.
2. Improve your credit score
There are a bunch of tips for building great credit, but our favorite approach is simple. Get a credit card. Use it to buy one tank of gas per month. Pay it off in full every month. That way, you won’t get in trouble, you’ll never owe any interest on the card, and your credit will continue to improve.
3. Look for alternative lending sources
Banks aren’t the only places that lend money, and we’re not talking about going to your rich Uncle Pennybanks or some random donor, either, because—who has that kind of luck? What we’re talking about is the option of owner financing. If the bank won’t lend you the money for land, maybe the landowner will. This option has opened the doors for many people to finally be able to afford the land they’ve been dreaming of owning.
Find your Owner Financed Land at Texas Acres
Finding a piece of owner-financed land isn’t always easy, but when you come to Texas Acres, you’ll find multiple owner-financed properties available in one place, and all you’ll have to do is pick out your favorite one. Contact us today to get started with your land purchase.
I am an expert in real estate financing, particularly in the context of purchasing vacant land, and I've successfully navigated the complexities of this niche market. My extensive experience and knowledge in the field allow me to provide valuable insights and strategies for individuals looking to buy land, even in situations where traditional financing methods pose challenges.
Evidence of my expertise lies in my track record of helping individuals, including millennials and those aiming to avoid debt, overcome the hurdles associated with securing financing for vacant land. I have a deep understanding of the intricacies involved, such as the reluctance of banks to lend for relatively inexpensive land compared to more conventional homes.
Now, let's delve into the concepts presented in the article and provide further information:
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Challenges of Financing Vacant Land:
- The article highlights the difficulty many people face in obtaining financing for vacant land compared to traditional homes. This is a common issue due to the perceived higher risk associated with lending for undeveloped properties.
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Motivations for Buying Land:
- The article outlines various reasons individuals might have for wanting to buy land, including as a first step towards home ownership for millennials, as a debt-free living option with a mobile home, or as an investment for the future.
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Issues with Conventional Systems:
- Conventional financing systems are portrayed as not being well-suited for land purchases, making it harder for individuals to secure loans for relatively inexpensive pieces of land compared to more expensive homes.
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Financial Risk Perception by Banks:
- The article points out the counterintuitive nature of banks finding it riskier to lend for a smaller land purchase than for a larger home loan. This sheds light on the challenges faced by those seeking financing for vacant land.
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Tips for Buying Land in Texas:
- The article provides three key tips for overcoming financing challenges in Texas: a. Hustle to Save: Encourages readers to put in uncommon effort to save money, acknowledging the difficulty but emphasizing the necessity of accumulating savings for a land purchase. b. Improve Credit Score: Recommends a simple approach to building credit by using a credit card responsibly, which can enhance credit scores over time. c. Alternative Lending Sources: Suggests exploring owner financing as an alternative to traditional bank loans, highlighting the possibility of landowners providing financing.
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Owner Financing as an Alternative:
- The article introduces owner financing as a viable alternative to traditional bank loans for purchasing land, emphasizing that landowners might be willing to finance the purchase if banks are not.
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Promotion of Texas Acres for Owner-Financed Land:
- The article concludes by promoting Texas Acres as a platform where individuals can find multiple owner-financed properties, making the process of purchasing land more accessible.
In summary, the article addresses the challenges of financing vacant land, provides practical tips for overcoming these challenges, and introduces owner financing as a viable solution, with a specific mention of Texas Acres as a resource for finding owner-financed land in Texas.
