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Ocean, Lake, River or Stream - Maine Waterfront Property New England's Lowest Prices

 

Maine Lakes and Ponds

Maine Wild Trout Ponds

 

Looking for an affordable waterfront vacation property or a second home spot in the northeastern United States, Maine is your best buy for both purchase price and lower development costs. In some areas of Maine it is currently possible to purchase a lakefront lot for as little as $30,000. Some fine riverfront land can be had for as little as $20,000. Salt water property along the northern Maine coast on bays and tidal rivers can be purchased under $40,000. Bold ocean front is cheap when compared to the other New England states. In Maine's northern interior it is not uncommon to find a 40 acre backwoods lot with a little stream flowing through it for under $35,000. Some of the land for sale is offered with reasonable owner financing.

Compared to other New England states, rural areas of Maine have less permitting and the associated hassle and fees. The unorganized territories of Maine have very low property tax rates and a standardized low cost building permit application process. The small organized municipalities are not subject to code requirements found in the larger towns and cities. Building what you want, the way you want to, is still possible here.

 

Union River

Maine scenic rivers

 

Most of the rural areas have a major service town or small city to provide culture, shopping and needed services. Areas near Augusta, Waterville, Newport, Bangor, Lincoln, Millinocket, and Houlton are all easily accessible along I-95. Drive a short distance out of these service towns, and you will begin to find waterfront land prices mentioned above.

Along the coast of Maine and Route 1, service towns like Rockland, Rockport, Camden, Belfast, Bucksport, Blue Hill, Ellsworth, Machias, Lubec and Eastport have many nearby rural communities with clean and scenic rivers, lakes, ponds and the most undeveloped coastline you can find in the northeast.

 

Maine Bold Coast

Maine's Bold Coastline

 

 

Of all the New England states, Maine is blessed with an abundance of waterfront in nearly every region of the state. The costs savings, cleaner environment, and freedom to do your own thing make the longer drive well worth it.

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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.

Comments

  1. OK Cash Home Buyers on

    This is very informative and is probably one of the best presentations of the pros and cons. Thank you for sharing
    • Owner Finance OKC on

      Awesome presentation, thanks for such a comprehensive article
      • Sooner House Buyers on

        Very well presented article, good job writing such a comprehensive article, totally share-worthy