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Tina
Tina, Lawyer
Category: Real Estate Law
Satisfied Customers: 5436
Experience:  17 years of legal experience including real estate law.
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Looking at a property with 80acres and single family home.

Customer Question

Looking at a property with 80acres and single family home. Large properties are common in my area(MI). Lender told me parcel must be split 30-40acres+house and then a vacant 40-50 acres. Problem is i can do 5% down on the 40acres+house but the "vacant" land requires 25% down with seems like alot!Current property is located in northern Michigan, Negotiated price is atm around $120k. This is farm land and we farm so acreage is important. Unofficial Property appraisal is $145,400.Is there another way to do this and how does one appraise the value of vacant land? If the house and first 40 acres could carry the entire negotiated buying price could the seller legally sell me the other 40acres for $1 or something?Vacant land here goes from $500-2,000 an acre appraised value. The farm next to this farm, similar conditions 105acres sold for $160k in October 2016.The property would be income producing and I was told by many people not to mention this to the lender....is that correct? The income is raising and selling pigs and sheep for breeding stock or meat with a current approx yearly income of $15k 2yrs into the business.
Submitted: 5 months ago.
Category: Real Estate Law
Expert:  Attyadvisor replied 5 months ago.

Welcome and thank you for your question. I will be the professional that will be assisting you.

Expert:  Attyadvisor replied 5 months ago.

I am not sure that you want to fail to disclose that this will be income producing property as that is considered mortgage fraud. Have you look into loans that accommodate these types of property? For example Rural and Agricultural Loans?