Owner Financing

Bargain Priced Owner Financed Lakefront Land

If you have been looking for some quality owner financed lakefront land in Maine take a look at these lots on beautiful Wytopitlock Lake in Aroostook County. The lake has little development and still offers a great wilderness experience yet is less than one hour from civilization. All remaining lots are priced under $40,000 We have four lots available on the lake with eastern exposure on a large peninsula providing shelter from bad weather.

DSC_0475

The lake front is good quality with small rock and slate along the shoreline. This is a good lake for swimming, boating and fishing.

The four lots have a semi-completed driveway, have all been soil tested and the boundary lines have been completely surveyed and marked on ground.

 

The lots are 1.25 acres and larger all with more than 200 feet of frontage. The land has had some pruning done in potential building sites to open up the views of the lake.

DSC_0463Wytopitlock Lake is over 1100 acres in size. There is a public boat ramp not far from the land for sale. The lake maximum depth is 24 feet. It is in both Glenwood and T2 R4 WELS in southern Aroostook County.

The lake has a good fishery for smallmouth bass and white perch. The outlet stream is a nice canoe trip to its confluence with the Mattawamkeag River just south of the village of Wytopitlock.

Call 800-286-6164 today if you are interested in seeing these properties.

 

 

ARE YOU PREPARED TO BUY MAINE LAND

Are you planning on buying a parcel of Maine land this year? If so, you need to know a few things before you start, especially if you are not from here and/or have never purchased land before.

FINANCING

Before you fuel the car or buy the plane ticket, have you considered how you will pay for it? Obviously, if you have cash this item can be checked off your list. If you intend to get a loan to complete the purchase, you should know it is not the same process as getting a home mortgage. Most US banks do not do land loans. So if you planned on using the BIG bank you have a credit card or your home loan with, save yourself a lot of time and money by asking if they will finance raw land. Ask them questions like:

  • What down payment would be required?
  • Is there a limit on how many acres they will accept?
  • Do they do business in Maine?
  • Do they have approved appraisers and title companies in Maine?
  • Is your credit score high enough for their land loan program?

If you find out they will not do the loan, you just saved yourself hundreds of dollars in travel expenses. There are a few solid lenders who finance raw land in Maine. So if you need financing give us a call to get the list. Also, many sellers will consider owner financing their lands.

GREAT EXPECTATIONS

Maybe before calling the lenders, you should ask yourself why are you buying land? What is your intended use of the property? Did you get all the information on your target properties to be sure the ground will meet your needs and desires? For example, if you intend to use the land for raising cattle, is the land zoned for that use? If not, you are going to waste time and money coming to see it. Make a list of your concerns and get the answers before you come, a few example as follows:

  • Is the zoning in line with your intended use?
  • Is the property in a tax program that prohibits your intended use?
  • Are the soils OK for your use?
  • Does the property have utilities to it? If not and you require them, how far and how much to extend them?
  • Does the property have year round access?

CLOTHING AND EQUIPMENT

The next item of preparedness that I nearly always forget to tell my customers before they get here is the appropriate clothing to wear for a visit to Maine. If you are looking at forested land, for example, and are unfamiliar with Maine, the forest here can be very dense and the ground uneven. Here is a checklist of the minimum gear you should have with you when you come.

  • Good pair of boots - waterproof if you have them
  • Sun or safety glasses to protect your eyes from tree branches
  • Layered clothing options for changing weather conditions
  • A waterproof coat

If you are working with one of us to show you the land, the above list will get you by. If you intend to do some exploring on your own, think about the following items:

  • A good compass
  • GPS
  • Maps of the areas of interest
  • Backpack
  • Water bottles
  • Snow shoes in winter

CUSTOMER OR CLIENT

The final question to ask yourself is are you confident enough to represent yourself or should you hire a broker to help you with the process. If you have the time you can do your own research and represent yourself in the process, but if you do not have time a good land broker is worth a look. Maine does require a real estate agent representing a buyer as a client to have a written buyer brokerage agreement, so if you do decide to go this route be sure to carefully review the contract to see what the agent's and your obligations are to each other.

Maine Lakefront Land With Owner Financing

 

Ski Trail Road Folsom Pond

The Narrows with views into Crooked Pond

 

Lincoln, Maine - It has been a winter to remember, but spring is coming and many anxious buyers have been searching for lakefront and other waterfront land and lots this winter. While looking around the state for lake and pond properties with fair prices and easy owner financing terms, we found the following properties the best buys in Maine.

 

Driveways are installed

Driveways are installed

 

The Narrows on Folsom Pond has seven available waterfront parcels ranging in size from 1.8 acres to over 5 acres. Prices starting at $29,900 The survey map linked here shows the configuration of the lots, those that are still available and the prices. MAP OF THE NARROWS

Folsom Pond is a semi-remote pond hidden in the woods in Lincoln. The pond is connected to Crooked Pond by a navigable "Narrows" the division of land gets its name from. These two ponds are not lined with sandy beaches, this is not the perfect place to swim. There are other lakes and ponds in Lincoln that are ideal for swimming with a couple of sand beaches nearby. Folsom and Crooked are the perfect ponds for kayaking, canoeing or small power boating in a peaceful environment usually free of large boats and jet skis. The rocky and water lily covered shorelines are the perfect habitat for waterfowl, smallmouth and largemouth bass. Wild blueberries line the shorelines. There are some cabins on the pond but most are not visible when on the pond.

 

Shoreline with view of Folsom Pond

Shoreline with view of Folsom Pond

 

The owner of these properties is offering owner financing terms that make buying the land very easy. If you thought you could never afford a waterfront property, you should look into these properties. See these properties and more at LandBrothers.com

 

The Pros and Cons of Buying Land with Owner Financing

The most common question we get from people interested in buying Maine land is; "Will the owner finance the purchase"? In some cases the answer is yes, but often the best land we have to offer for sale does not have owner terms of either a mortgage or contract for deed.

Pros

From a buying point of view what are the advantages of financing your land purchase with the owner? .

Less Down Payment

One of the advantages of owner financing is sometimes the down payment requirement is less than required by a conventional bank or lender. If the owner does not have a mortgage on the property they will sometimes finance with less than 20% down payment. This is considerably less than a bank would require.

Easier Qualification

If you have had a few credit blemishes in the past an owner is more likely to extend credit than conventional lenders. Many owners will ask for a credit report and a low score could cause the owner to decide not to finance the property or ask for more money down and/or a higher interest rate. The owner is also less likely to want to see all of your financial history which for many is enough of a reason to stick with the owner. Some banks and other lenders require a lot of documentation to consider a loan.

Cheaper Closing Expenses

Owner financing usually comes with lower closing cost requirements. Owners will rarely ask for appraisals, points, flood certifications, title work among other things. For buyers looking for short term financing the cost savings of low closing cost may be the reason they want the owner to hold paper.

Time

Without any question the purchase of land with the owner financing the transaction is much quicker than the same loan with a bank. Most owner financed land deals will close within 2 weeks of the offer being accepted. The owner may have a licensed loan originator package the deal but no underwriters or other reviewers will need to approve the deal.

Cons

For the buyer who insists at only owner financed purchases the downside could be considerable. You may think that owner financing is the best way to purchase but here are a few things you should consider before ruling out other means of borrowing.

Interest

Most owners ask for and get interest rates from 1 - 4 % higher than some of our conventional banks charge. Over the life of the loan this increase in rate could add up to thousands of dollars in additional land cost.

Less Choices

Many owners have mortgages on the land that they are selling. With a few exceptions most of the owners lenders will require them to pay off the note with the bank if they sell the property. This could cause the seller to ask for a larger down payment or refuse to consider owner financing altogether. If this is the perfect property for you, other forms of financing should be considered in order for you as a buyer to have all land available for you to purchase.

Higher Price

If you are asking the owner to finance the transaction they are less likely to take less than they are asking for the property. Having financing secured ahead of time with an alternative lender will put you in a position to offer the seller an all cash deal. Many, if not most owners will negotiate a better price for an all cash deal.

When looking to buy land in Maine keep all of your options open for purchasing the right property. If you have sufficient down payment, good credit and patience; owner financing is not the best choice. Many more properties at better prices will be available to you with an all cash offer. Call us today for a list of land friendly banks and other lending options.

Owner Financing Maine Land

If you are interested in buying Maine land with owner financing find some great land parcels at our listing page. Are you trying to sell your land? Maybe you should try financing your Maine land sale. Why should you consider this option? Because owner financing can help get your land sold faster and earn you more money. Here are a few reasons why and other things you should know.

Most Banks Don't Offer Land Financing

When a buyer for Maine land is looking for options to finance their purchase they usually start with the bank that holds their checking and savings accounts. In many cases, if the acreage of the parcel is larger than a simple house lot, the lender will not consider the loan. If they do interest rates may be high, or worse, the down payment requirement is not reasonable.

Specialty property types such as Maine timberland investments, hunting/fishing/recreational land, larger waterfront land parcels, farmland and other large acreage properties can be difficult to secure financing for. In Maine there are traditional banks and credit unions that offer attractive terms for land. However, the average buyer looking to purchase land will not know who those lenders are and will often get frustrated with the search. They will naturally look for ways to make the process cheaper or less complicated.

Buyers Prefer Owner Financing

Many buyers prefer the ease and speed that owner financing allows them to purchase land, so they search land for sale with such offers. This gives the land owner who is offering financing terms competitive advantage over other sellers. Although owner financing interest rates are usually higher than a bank rate, the lower down payment requirements, fewer required fees and closing costs combined with a less hassle process are often preferred by potential land buyers.

Amortization

Not only does it help get your land sold faster, another good reason to finance your land is the interest you can earn. When your Maine land sells, what will you do with the proceeds? If you said "put it in a savings account" why? Unless you need the liquidity cash, your money could be working better for you with amortized payments for the land. The front end of an amortization is mostly interest. Even if the borrower pays off early, you will be assured to collect a return on your investment. Looking at all of the options out there, owner financing can be hard to beat.

Less Risk than other investments

If done properly, holding a first mortgage on your land is a safe position to be in. Should the buyer/borrower default on repayment, you will have the land as security. There will be costs to pay for the foreclosure action should the borrower default. To reduce your risk, require enough down payment to cover your legal expense of recovering the property.

Things to consider

How much down payment should you require? That depends on many factors. Among others these are a few: how much risk are you willing to take, the interest rate you will receive, the buyers qualifications and standing timber values that could be removed.

The process for lending has become more complicated for the land owner than it was just a few years ago. The reason is the need to be in compliance of new federal regulations on lending. You will hear a lot of different opinions from lawyers, land owners, buyers and others about these regulations. We advise our clients to consult with legal counsel and private lending loan originators regarding owner financing to be sure that all legal documents, lending processes and disclosures are complete.