Land financing and financing terminology questions

[bobbintb]

This isn't really about building just yet but I thought this was the best place to ask. I've been doing some reading about financing the purchase of land. I already have the lot picked out and it is in a gated development, with water and power already. I'm just having trouble sorting out the lender stuff. I read many national lender don't do land purchases and it's better to go local, as they know the area.
I also read that many land loans require 25-50% down for raw land loans but land that is developed or finished (roads, water and power access) down payments can be as little as 10-20%. I am now finding a lot of variation among lenders in terminology. One I looked at just has "land loans" regardless of development. Another requires 20% down for "land loans" and 10% down for "lot loans". There are also "construction  loans" of various types. It gets very confusing. I am looking at a lot in Idaho and trying to get 10-20% down. Any suggestions on a lender or other suggestions that can clear up my confusion?

[Dave Sparks]

Ask the owner of the land for financing! They often will take a lower down payment and reasonable interest rates. Some will have a balloon payment at 5 or 10 or ? years and you will need to pay it.

They keep the deposit and monthly payments if you default.

[MountainDon]

That is how we did it. 20% down and paid it off in 5. Could have taken longer as we had a 15 year term, but we had a balloon as Dave described.

[Don_P]

Ours as also owner financed, minimal down, higher interest on a 10 year which we paid off in 5 "without penalty" ( a clause to put in)