Posts: 325
Threads: 54
Joined: Jun 2007
This is for a friend...
Does anyone know of a mortgage company or bank in Hawaii that gives loans for vacant land purchases? Our friend is looking at lots costing around $200,000 and would be able to put down about 60-70%, for a total loan of only $60-80k.
Does anyone do this in Hawaii?
Posts: 473
Threads: 19
Joined: Jan 2009
Vacant land financing is hard because it is too easy for people to walk away (and may do) leaving the bank holding the bag. Still 60-70% seems high even for the most conservative lenders - however times have changes so maybe this is the norm now. There are also generally requirements that the land have certain improvements and that it be built on within a certain period of time. I hope they have good luck!
-Blake
http://www.theboysgreatescape.blogspot.com/
Posts: 2,314
Threads: 59
Joined: Jun 2003
Both Bank of Hawaii and Finance Factors have land loans in that price range as long as the property is not in Lava Zone 1 or 2. Stay away from Island Home Capital unless you want to participate in a loan fraud.
Aloha,
John S. Rabi, GM,ARB,BFT,CM,CBR,FHS,PB,RB
808.989.1314
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"
Posts: 325
Threads: 54
Joined: Jun 2007
Thanks, John. My friends will call Finance Factors. They already talked to Bank of Hawaii and were told that there was no program for vacant lots. They do have construction loans, but you have to begin building fairly soon to get one of those.
Posts: 2,314
Threads: 59
Joined: Jun 2003
I am sorry, I meant to say First Hawaiian Bank!!! (One warning though, they take forever to process documents, so tell your friend to make sure they have enough time for the closing.)
Aloha,
John S. Rabi, GM,ARB,BFT,CM,CBR,FHS,PB,RB
808.989.1314
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"
Posts: 2,014
Threads: 46
Joined: Jun 2003
If Ag, call Linus at 808-961-3708 or email: lpt@hawaiifarmcredit.com
From their website:
Hawaii Farm Credit
What We Offer...
Are you planning to buy open or improved land, construct a new project, purchase livestock or equipment? Do you need funds to operate your business or to refinance an existing mortgage?
I used them, nice folks.
David
Ninole Resident
Ninole Resident
Posts: 138
Threads: 20
Joined: Aug 2004
We've worked with Linus at Hawaii Farm Credit and were very happy with their service. It was for a large ag parcel. Being able to demonstrate some ag-related intent seemed to be a criterion for them.
Noel
http://HiloParadise.com
Posts: 325
Threads: 54
Joined: Jun 2007
Our friends are not planning to go into agriculture, but it is great to see that someone wants to fund small farmers. We need less BigAg and more family farms.
John, thanks. Here is the First HI Bank link:
http://www.fhb.com/mortgage.htm#LL
Posts: 2,314
Threads: 59
Joined: Jun 2003
It's so easy to mix up companies with "Hawaii" in their names. The only loan we have ever been associated with from BOH was an equity line. We did get many land loans from FHB, hence the warning about the long time needed to close.
Aloha,
John S. Rabi, GM,ARB,BFT,CM,CBR,FHS,PB,RB
808.989.1314
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"
Posts: 229
Threads: 5
Joined: Jan 2009
quote:
Originally posted by hpp4me
We need less BigAg and more family farms.
Is there some shortage of family farms that I didn't know about? Who's to say that "BigAg" wouldn't qualify for such a loan as well?
