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Discussion Starter · #1 ·
So I had this brilliant idea to buy some land, fence it in, and keep my mare there seeing as board here (self care) is $250+. I found some land, 4 acres for sale just minutes from where I live, the mortgage quote I got was $47 with taxes a month. Completely doable for me, and I've been quoted $2000 for fencing in the area, also doable. My question is, what type of loan should I be getting for something like this? It's a different type of request seeing as I don't plan to build a house, but maybe a horse barn. I've done some research about the mortgage and I can only receive one if I have a building that can be mortgaged on the land, what about a horse barn/stable? I've researched that as well, and found an Amish site that will build a 3 horse barn for about $10,000. That combined with the property should come out to about $100 total mortgage payment. Is this a possible thing to do??? Gosh I really want her closer to me!!! And $250 self care board, with gas, feed and grain, is getting crazy!

Has anyone had experiences with this? Perhaps someone who is a Realtor of lender???
 

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I can't answer that question for you as it could be different for each state. You could try a mortgage broker or ask the agent (if it's listed) if the seller will take back a mortgage.

I hope you're not going to keep her alone.
 

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The first thing you need to do is talk to people in the vicinity to see how much their wells cost. The first thing you need to do in sink a well. You have to have a reliable source of water. Don't tell us you'll haul water but that doesn't always work out. A 200 gal tank can start to get skunky within a few days because of bacteria from the saliva. You need to talk to the bank in person to see what minimum size will get you a mortgage. A well drilling company can do a test hole to see if the land even produces water. The cost of a well could easily surpass $5000. Have you factored in the cost of hay when the grass runs out and it will in the fall. Do you have a source of hay? When you've added everything up, factor in a 30% cost overrun. That should give you a better idea. I suspect the figures will be pretty close to $250 mo. What are the taxes both now and once improvements are made? Will the taxes be part of the mortgage or a separate annual payment.
 

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Discussion Starter · #4 ·
The good thing is it's already set up with water! That's why I'm looking at this particular plot. It's near residential areas but I don't think it's clear to build houses there, but it's cleared for agricultural uses. It's crazy how cheap these acres are with water and sewer ready, and it's in an area that is usually extremely expensive. I will have to see how it plays out, but it would be great to be able to do it. Much cheaper than board! And maybe I can ask a few friends to board with me to offset more of the costs. My only issue is going through with this, we are a military family so what would I do when we moved in the next few years?

Thanks for the replies everyone! I'm actually in contact with some banks about getting a land loan. :D
 

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.

Lending policies will vary.

But back when I was a Realtor, most places would only loan money on land with a 50% down payment, I have heard that loans for "land only" are very hard to get and almost impossible anymore.

2,000.00 for a Fencing 4 Acres?
10,000.00 for a Barn?

I need to move to your area :lol:

Seriously, I think someone is misquoting or would build something so cheap you would not want it nor would it be be safe.

It cost us 1,000.00 to fence 1 acre and we did the labor ourselves.
I built a deck on the house last year and it was 1,500.00 for material only, we did labor, a small deck only 12'x16'

You also need to think about how to get the water to the Horses, is it a creek (fencing problems) or will you need a pump? If a pump, electricity?
Then you have property taxes.
What about liability Insurance.
Maintenance on the Fence.
Maintaining pastures, reseeding, weed control, bug control, etc.


.
 

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give your local Farm Credit a call, also check out USDA

both should be able to help you and probably better than most banks
 

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if all else fail, get a personal loan.
The fencing cost all depends on the type of fence you are going to use.
i would get every quote in written form and have it be specific as to what type of fencing.
we refinanced one house to buy land and put in the well approx $35,000.00 for the well
well cost go by the depth, and if you hit a dry hole.. you are just out the moola.

Good luck.
 

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^^^ Yes, having to drill a well is the biggest and costliest risk you have. Also, make sure it will support a septic system in case you ever want to put a house on it.
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