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If you guys were going to purchase land (20+ acres) would you use the bank you have your house, checking, etc with,
or is it better to borrow from a land bank? I've never bought any land other that my house before. Wife and I are looking
and buying some property and didn't know if just using my current bank was best or do land banks offer better rates?

Take this for what it is worth because I have no real experience with it but I do hear that rates and financing options will be better through a land bank.

Land banks require stock purchase, but their rates and terms are better, and usually pay a stock rebate at the end of the year, too....not always, but usually.

Cash purchase is the best

jbs38654 wrote:Cash purchase is the best

If you are donating the cash, I'll gladly accept.

jbs38654 wrote:Cash purchase is the best

Can't hide money

When my wife and I bought land, we looked around at all of em, the land banks were no better than BanCorp or any of the others...the bank we use for everything is Mutual (Vicskburg) but at the time they didn't lend on only land so we went to BanCorp South...all the rates from everywhere were pretty much the same, the differences were the term limits and they all had you refinancing at 5-7 years and would not do a fixed rate for more than 7 years, which is the longest we found,,,but that was several years ago

I love local banks. There's no set rule that Land Banks will be better than a Regular Bank. Local home-owned banks can give you any terms they want within reason. So, the more business you do with them, the more they will work with you on rates and such. They don't fee you to death either. They have to follow FDIC rules......but will be more willing to help you out on things versus a Regions or Trustmark. The bigger the banks, the more stringent the rules. For instance, some banks require 50% down on the purchase of a share of stock in an undivided interest hunting club. Small local banks may only require 10-20% down.

If you don't do a lot of business with one bank, your best bet is to shop around and see who wants the loan the most.

With good credit....15% down. 30 yr ammo. Fix rates up to 15 yrs. Dividends paid every year for last 15, paid 1% back last 3 and will going forward. Really hard to beat southern ag or land bank.....

JMallard wrote:With good credit....15% down. 30 yr ammo. Fix rates up to 15 yrs. Dividends paid every year for last 15, paid 1% back last 3 and will going forward. Really hard to beat southern ag or land bank.....

Well spoken.

1%??? Dang we gotta tighten up in the north half.

When I bought mine 3 yrs ago regular banks wouldn't even talk to me about it. I went with So. Ag Credit, I have gotten a check worth atleast 1 monthly payment every year so far.

I will vouch for Joe Mallard and his post above. Great guy and business.

I assume your still Water Valley. Call Tom Sawyer at First South Farm Credit in Oxford.

nipntuck wrote:I will vouch for Joe Mallard and his post above. Great guy and business.

+1

Great to deal with and can make it happen quickly on land, and I work for a normal bank.

That's awesome. Thank you so much. It's fun. JM