NEED HELP!!!

[kgun12]

I found a great piece of property to buy,and I have been saving up, but I wasn't really in the market this year due to other expenses. Well this is an awesome opprotunity so here's the question. I have heard that on this type of purchase requires about 20% down, is this true and/or does anyone know a lender that requires less? I could take money out of my 401k but I have to retire in 5 years, at age 56 (mandatory for air traffic controllers), so I really don't want to do that, but I will think about it to get this property.

Edited August 7, 2012 by kgun12

[Fairgame]

Kgun12

Do you own a house? If yes how much do you owe compared to value. Or is it paid off? Taking money out of your 401k close to retirement isn't a great idea

[kgun12]

Kgun12

Do you own a house? If yes how much do you owe compared to value. Or is it paid off? Taking money out of your 401k close to retirement isn't a great idea

I know but I don't have that much equity in the house.

[growalot]

Well ......how good is the family situation?...can they swing it with you paying back with going rate interest?...do you have any other things you could put up for just the amount need to cover down?...then again...that pops up in the records and loan might not go throughis there a realtor involved...if not all kinds of arrangements can be made...

[kgun12]

Well ......how good is the family situation?...can they swing it with you paying back with going rate interest?...do you have any other things you could put up for just the amount need to cover down?...then again...that pops up in the records and loan might not go throughis there a realtor involved...if not all kinds of arrangements can be made...

The family is an option and there is no realtor involved, so I will look at everything! We have only had 2 conversations so it's still early. I will try everything!

[Sambuca]

Kgun, Dont mess with your 401K, you have a lot of retirement years ahead. Try a home equity line of credit. These usually cost nothing to set up. If you can't swing the 20% down from HELOC and your savings, maybe you shouldn't be getting into a long term financial committment on this property. You might be getting in over your head. Don't risk financial security for one property, there will be others within your limits.

This is just my opinion as a very financially conservative person.

[kgun12]

Kgun, Dont mess with your 401K, you have a lot of retirement years ahead. Try a home equity line of credit. These usually cost nothing to set up. If you can't swing the 20% down from HELOC and your savings, maybe you shouldn't be getting into a long term financial committment on this property. You might be getting in over your head. Don't risk financial security for one property, there will be others within your limits.

This is just my opinion as a very financially conservative person.

You make a lot of sense and I know this. It is 250 acres with a rough 4 bedroom rough cabin, no electricity there is a well and the price is $125,000! They are trying to get out of it because they just don't use it and are having trouble selling it do to the economy.

[ny hunter]

Offer them 100,000 its been on the market that long they just might go for it.Goodluck!

[tommyc50]

i am in the same boat i could borrow agaist my 401k BUT i have to pay my self back [ im 52 trying to leave @55 so my other option is to refi on my house which the would help taxes @end of the year and pay the whole amt. for the prop word of advice GET AGOOD REALESTATE LAWYER, SURVEY, TITLE SEARCH find out about mineral rights. and school tax and propt. tax [theres a diffence] DONT RUSH . good luck

[hunter]

Kgun, I don't think borrowing from your 401 is a bad idea if you can afford that payment plus the rest of the payments on the mortgage for the property. Plus the taxes. Without electric you can't plan on moving there when you retire. BTW I think you could establish a great hunting spot with a lot less land. Many on here have 20-40 acre lots with food plots and do quite well.

Even a small piece of land with electric available could be you retirement home and the food plots and blinds will already be there. Good luck.

[BizCT]

What about going in with a buddy? $48K each, get it for $96K!

[burmjohn]

Yeah, I'd see if you can either go in with a family member or seek other alternatives to your 401k. Unless its a temp loan you will pay back fast, you don't want to loose those potential earnings.

There are always other opportunities.

[NYbuck50]

You'd be much better off taking a 2nd note on your home, rather than borrowing from your 401(k). borrowing from your retirement doesnt just mean that you pay yourself back and all is even. your also losing the time value of that money, and the compound interest that comes with it..

[phade]

That is certainly a deal if it pans out and all rights are conveyed.

I'd not opt to hit up the 401k but, if it were possible to buy this...I'd do it, and then consider selling a portion of it to recoup the finances. Chances are you could break off a 50 and a 25 acre portion and sell them separate. That leaves you with 175 acres...which is plenty of ground in NY.