You've already received several answers and the opinions seem to vary quite a bit. Truth of the matter is this: NO. the "establishment" lending institutions don't finance undeveloped land. You'll need to find a "for sale by owner" piece of property. Interest rates and terms can definitely fluctuate quite a bit. Apparently some people think the loan's interest is necessarily going to be HIGH.
I just would like you to feel a little bit BETTER by finding out that's just not necessarily true! When my husband and I bought our land 12 years ago, the land developer charged us 11% interest which IS a bit high. 12 years later we're selling off some of our holdings for 6%. So how's THAT for inflation and "expensive"? Not so much. o)
We're incredibly easy to work with. no credit
checks like you'd go through with a bank. Can't beat THAT! Usually we write the note for 30 years with a 5 year balloon. 30 years to keep your monthly payments as low as possible, and with a 5 year balloon to give you 5 years to either pay it off or have it re-financed with someone else. With the monthly payments figured at the 30 year length of term, like I said, it makes the monthly payment very affordable, and any extra you can pay would go straight to the principal. allowing you to get the loan paid off WAY QUICKER!
You didn't say where you're looking for property. We're located in Northern Arizona. Here's a bit I wrote to someone here who was asking where to find cheap land:
Hope that helps! You can find me here:
Category: Personal Finance