+- Punaweb Forum (http://punaweb.org/forum)
+-- Forum: Punaweb Forums (http://punaweb.org/forum/forumdisplay.php?fid=3)
+--- Forum: Punatalk (http://punaweb.org/forum/forumdisplay.php?fid=10)
+--- Thread: Land loans in Puna? (/showthread.php?tid=11175)
Pages:
1
2
Land loans in Puna? - OverOahu - 09-16-2013
Aloha Everyone,
Just wondering how difficult it is to get a land loan on acreage in hawaiian acres or orchid land?
It is my understanding that because its not lava zone 1 or 2, that its not going to be that difficult, but the person at FHB who I talked to about this seemed about as clueless as me! And they were a loan officer
Can anyone offer any advice on this? Looking to borrow between $30-40k
And have money for a downpayment. Have stayed in puna several times for vacation and getting closer to deciding on a subdivision.
Anyone know a good credit union/bank/mortgage co or realtor for this?
Any help is appreciated!
Mahalos!!![8D]
RE: Land loans in Puna? - David M - 09-16-2013
Call Linus at Hawaii Farm Credir Services
(808) 961-3708
http://www.hawaiifarmcredit.com/contact.html
They did our land loan.
You can tell him, David in Ninole recommended.
David
Ninole Resident
Please visit vacation.ninolehawaii.com
RE: Land loans in Puna? - Aaron - 09-17-2013
Banks aren't really into giving loans for vacant land nowadays, but I could be completely wrong.
Living on the side of creation.
RE: Land loans in Puna? - beejee - 09-17-2013
I was able to get a land loan in HPP a couple years back. It took a long time to find a lender but I eventually did. I ended using Finance Factors.
There were stipulations to obtain the land loan:
1) High percentage down, 30-50%
2) Must also qualify and be approved for a construction loan for an average home ($100-125K + SSPP fees etc.)
3) Must agree to execute said construction loan if land loan not fully paid within 3 years
4) Loan payments based on 30 year amortization schedule
5) High interest rate
I seem to remember there was also a credit union lender over on Big Island at the time, but as I was on a neighbor island I couldn't open an account there.
Best of luck.
RE: Land loans in Puna? - terracore - 09-17-2013
I looked into this same question a few years ago. Getting a "personal loan" had about the same interest rate and wasn't secured by the land, so if I got struck by lightning and couldn't work they could destroy my credit but couldn't touch the land. Shortly after getting the loan and buying the land I took advantage of a few credit card offers with a 0% for 18 month cash advance feature and paid off the personal loan with the credit card offers. Then I paid most of the land loan off within the terms and rolled the balance onto new similar offers. In the end the land loan was paid off for virtually zero interest, which allowed me to pay it off almost two years earlier (at the same monthly payment) than if I went with the original loan.
So my advice is to forget about the vacant land loans and get creative.
RE: Land loans in Puna? - unknownjulie - 09-17-2013
I am basically doing what Terracore is doing. Also, in Orchidland. You can get a personal loan for around 5% at either of the credit unions. FSU on Kinoole, or CU by Big Island Candies. 25k is the max. Once you get one at one of the credit unions- it is harder to get the second one at the other credit union, but not impossible. These are unsecured loans and you have to show income of around 3-4k per month to get them, with good credit. GL!
RE: Land loans in Puna? - unknownjulie - 09-17-2013
I am basically doing what Terracore is doing. Also, in Orchidland. You can get a personal loan for around 5% at either of the credit unions. FSU on Kinoole, or CU by Big Island Candies. 25k is the max. Once you get one at one of the credit unions- it is harder to get the second one at the other credit union, but not impossible. These are unsecured loans and you have to show income of around 3-4k per month to get them, with good credit. GL!
RE: Land loans in Puna? - beejee - 09-18-2013
Just for context - I bought multiple lots and did use a CU personal loan to fund part of the down payment. If you have a small land loan I would follow what terracore and unknownjulie have done. If you need a larger loan ( > $25K ) you'll be subject to some additional lending stipulations.
From the lenders point of view, receiving land via a loan default isn't a great prospect. There's little value there from a lenders perspective.
RE: Land loans in Puna? - kalakoa - 09-19-2013
My books say ... there is (or was) something called a "construction loan", which is disbursed in "milestone" stages that allow purchase of land, materials, and hiring a crew. After construction is finished, the loan converts into a standard home loan.
RE: Land loans in Puna? - micro - 09-19-2013
Homestreet Bank does construction loans as described by kalakoa and they include the land, but they do not offer loans on empty land. If you are interested, you can call John Abplanalp at Homestreet at 808-265-6379.