Need advice I sold my first home back in February made pretty good off of it. Now I have the opportunity to buy land my question is is it best to pay cash for the land then finance the house build? I’m going with a post frame house/shop. The land purchase will use around 75% of my savings I have for land and a build. Also do I out land up for the loan to build?

With interest rates low and inflation rising…I would put down just enough to get the party started.
Not suggesting to overextend either though.

I bought my 25 acres last year.
15% down 85% financed for 20 years, rate is 4.3% and they issue an annual dividend of 1%+/- making the effective rate 3.3%ish.

Depending on how much property you're buying you could possibly deed several acres with the home at a much lower rate than an outright land finance. It would save you some points.

I know of 70 plus acres in lauderdale co for sale. 1.2 mil.

We bought our land outright after selling a home, and then used the land as collateral and did not have to have a down payment toward our new home. All money financed was for our home build.

It will be 16 acres. Thought about paying cash for half of the land financing the rest and take rest of my cash to start the building process

I'd keep some cash handy during the build process

You will probably have to have the land paid for before a bank will give you a loan to build a house.

The financing for the property would be a different loan than the financing for the house. He may have the option to roll them together into a single mortgage after the house build is completed. Depends on the lender.

I bought my house and 30 acres of land from my dad. When I went to get financed the bank told me that they could only finance the house and 10 acres of land because the land could only be a certain percentage of the value of the finance. I had it re-surveyed with the house and 10 acres and walked away from closing owning 20 acres free and clear.

Any recommendations for a good lender in the cullman co area? I will be doing 90 percent of the building process try to save money

I bought land first (put 20% down on the land) then did a separate construction loan for the house. There was about a 6 month gap between purchase of the land and signing anything with the home builder/lender for the home. We used AgSouth to finance the land and they also financed the construction loan. Ended up paying on two loans at one time during construction but once it was finished they rolled it all together and adjusted the interest rate. If you can buy the land outright, that would be the way I’d go. Less to have to worry about while you build your place. Not sure if AgSouth is in your neck of the woods but they were awesome to deal with. Also, you may want to see what can be done in terms of taxes on your property. Here in SC I was able to get a homestead exemption which helped lower property tax.

You’ll need 20% down on the house to save the PMI cost.
It’s not much but every 50-100.00 counts.
I wouldn’t put anymore down than I had to but to avoid the PMI. There’s a lot of other expenses you may need some cash for.
That’s just my opinion. Idk how to finance both together.
I bought some land through First South in Northport in 2009.
Was pleased.

Farm Credit???

Just find non posted land and squat. Problem solved.

Do not tie up all 16 acres as collateral for the house. Carve out only what is necessary for collateral on the construction loan on the house. Personally, I'd do the house and a couple acres. You do not want to ever give a bank excess collateral on any loan that they make. Keeps things much cleaner in the event that you ever want or need to sell some of that additional acreage. If it is all tied up in the first mortgage on the home, getting a bank to agree to release it can sometimes be a big mess. Money is as cheap now as it will ever be (low int rates). Finance both and keep your powder (cash) dry.

I bought my land borrowed the money, I used all my money to build. I needed around 30,000 to finish. My lender loaned me enough to pay the land off so I ended up with my land free and clear. At the time interest was cheaper on the house

My house and 45 acres are all in one mortgage

There’s no way in hell I would mortgage my house and farm together. My house and one acre is mortgaged. The other 39 acres are free and clear of any liens.

Alabama Farm Credit