Getting financing for "Land Only" - where to start?
The 'other half' and I have a small farm (6+ acres) that is financed in his name. We've been here since 2007. We are fairly rural.
Recently the additional pasture we lease has come up for sale and we are interested in purchasing it. I'm looking for input on financing.
We've got enough cash to put 20% down. This land is right in front of our property and our drive way is actually an easement through this land. Naturally that is why we want to buy it. We were considering selling in 4-5 years and thought 'our' existing property layout would be more marketable with the addition of the property in the front (including the driveway, again even though it is an easement).
This land isn't 'wild', it is open pasture, fenced with a shelter, and it is road front property. County water, electric is all 'right there', there is no septic or well on it.
Right now our farm & house mortgage is in my SO's name, with a VA loan. We recently refinanced to a lower rate (yay for us).
At this time he probably could not get a land only loan, his credit is great, but he is a full time student at this time and in the Army Guard, so his income is not high. I work full time and have the farm business. My credit is 'ok' (not bad, just not excellent) and the only thing I show as far as expenses is my $200 mo car payment.
We are not married, and just have not gotten around to it. :)
So we started talking about this land purchase and a lot of 'what ifs' came up.
What if we purchased that and we (as in 'he') went from having 6 acres to 10 acres, does that change our agricultural status?
Would it be better off for the long run (resale) if it was purchased in his name since his name is on the deed for the house/barn. I know the run in we had in the beginning when we purchased the initial house/barn was that getting a loan for that from one seller would not cover buying the front property that is owned by someone else.
If I did buy the land up front (on my own) and we got married by the time we decided to sell, would it be difficult to get these two propertys deeded in a way that a buyer could easily purchase them together (and not have the issue we had)?
Then I got to thinking, what if he took over the boarding business as income... (which is fine by me because we split the chores 50/50 and just apply the income to our mortgage).
I'm sure a lot of my questions depend on where you are located (county, state, etc).
I'm just getting thoughts out of my head. :)
A friend suggested I start at the local farm credit and ask an extension agent about acreage/agriculture tax rates etc.