To purchase land or a lot in Oklahoma you need to get a bank loan, acquire a construction loan, or have cash.

Lets focus on a land loan. Land can be improved or unimproved. Meaning, the land could have improvements already on the property because a mobile home was there once, or there was a fire and a home was there originally. Some lenders have bank policy on improved or unimproved land purchases.

Now lets discuss the bank loan with this scenario. A buyer wants to purchase land and wait to build. Land purchases are not 30 year mortgages. The terms are usually no longer than 7 to 10 year notes, and have a higher interest rate than a mortgage. They normally require down payments of 20%, plus or minus.

A construction land loan would require the same down payment +/- and approval on house plans from the mortgage department. The lending institution would allow a buyer to purchase the land and then begin to build the house. When the construction on the house is completed, the construction loan is now ready to close for a 30 year mortgage, with much better interest rate than a land loan would be.

If you are looking for rural land in the Washington and Goldsby, Oklahoma area… call on me. Purchasing land needs investigated, just like a home needs inspections before purchasing.

Click on this link from Westfield Insurance on how to enjoy the land: https://www.westfieldinsurance.com/resources/articles/how-to-start-a-sustainable-hobby-farm

Deborah Allison, Realtor/Broker, Washington, OK OREC #140437

405-249-2810 Cell

Click this email link to email: deborah@deborahallisonrealestate.com