Home Buying in Greenville>Question Details

Clamytoe, Home Buyer in Greenville, TX

Question about lending to 2 families for 1pc of land???

Asked by Clamytoe, Greenville, TX Mon Feb 7, 2011

a friend and I want our families to go in and buy some land ( at least 10 acres ). We would love to buy one with a home or manufactured home on it. Both families would come to the table with 10% to make the 20% down payment. Both families have great to excellent credit with no debt. What we are planning is for one family to move out to the land while selling their current home and the other family move when the other's house sell. We do have back up plans of course, but I guess what I am asking is...how would the banks loan this?? Would they even loan to 2 families for 1pc of land?? Thanks so much for your answers.

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Answers

4
Why on earth would you do this?
I think it is a good way to end a friendship.
These kinds of deals between friends and family often end in disaster.
I can think of about 10 questions quickly that could end that friendship.
Just way way way too many things that can go wrong.
If you both have excellent credit and no debt I am thinking you are
making really good with your finances, making good money and great savers.
Why don't one of you just wait another year or so, save the purchase price and pay cash.
Or take a home equity loan and pay cash.
Then if the other family makes it out to the land, sell them 1/2...the exact 1/2 they want or
you want to sell.
The second best way to lose a friend and potentially some great money is buy land together.
1st way is to lend your friend money.
The biggest problems we have to handle here are exactly these kinds of transactions between
friends and relatives.
Sorry for the bad news....
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Thu Feb 10, 2011
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Hi, I am Martha I sell manufactured and modular homes and land as well as site built homes call me direct to answer all your home buying needs. I have many lenders who only deal in manufactured home lending 903-390-8759 direct Martha Busby with Keller Williams. I would like to assist you in all your home buying needs. Call me it can be done......
0 votes Thank Flag Link Mon Feb 7, 2011
You do want to find out the zoning for the land or CCR's and what will be needed to be done to make it livable for two families i.e. subdividing the land if it's raw land and pulling utilities like your water/well, power, gas & phone. Does the ground perk for septic if that is needed. Then talk with a lender to see if the two families qualify. Just a tip if the land is bank owned you may want to speak with the bank that holds the land. As long as all parties qualify and has the money down you should be able to purchase the land together and share the deed. You may want to also talk to an attorney and form a LLC and have an operating and financial agreement between the purchasing parties in place before you complete the deal. Most important, can each family afford the land on their own if the other defaults or does not sell their home?

Good luck,

Sandy Farmer
Realtor, GRI, CSSN
John Hall & Associates
homesales411.com
Web Reference: http://homesales411.com
0 votes Thank Flag Link Mon Feb 7, 2011
Probably best confer with local bank to lend the money. Banks do lend to family members HOWEVER virtual answer not best interest.

You need confirm with city prior purchasing land you can place a manufactured home on property .


Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Mon Feb 7, 2011
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