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What Will I Pay?


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Loan Rates

Land Loans
6.75%


estimate payments

The maximum loan amount for the Land Loan program is $100,000. If the purchase price of the land is more than $100,000, you must also pay the difference between the VLB's net financing amount and the purchase price at closing.

You must have at least a five percent down payment invested as cash equity in the property. The down payment is paid at closing using certified funds.

star Appraisal and Contract Fee
$325 submitted with the completed application

star Interest Rates
The actual interest rate a borrower pays will be determined when their completed application is submitted. Interest rates are determined by the rate the VLB pays on the bond proceeds and are subject to change at any time. All loans are subject to credit approval.

star Loan Financing
The loan term is 30 years, payable on or before the due date. There is no prepayment penalty.

The VLB will finance the lesser of the following:

  • $100,000, or
  • 95% of the final agreed purchase price, or
  • 95% of the appraised value of the land.

Title Insurance is required and the cost is paid at closing.

Credit life insurance is optional. It can be purchased through Minnesota Life Insurance or through the carrier of your choice. If you choose to purchase coverage through Minnesota Life Insurance, and the insured party dies, the remaining balance of the loan (minus any delinquent amount) will be paid in full.

star Roll-Back Tax
If the land has had either an agricultural or open use tax rate, it may be subject to additional taxes called “roll-back” taxes. Roll-back taxes apply to previous years’ taxes (up to five years). Typically, these taxes are the responsibility of the seller; however, it is negotiable. Prior to closing, make sure it is clear who is responsible for these taxes. After closing, these taxes become your sole responsibility.

star Closing Costs
All reasonable and customary charges permitted by law for processing and closing a real estate loans usually apply to a VLB land loan. The VLB is not responsible for any of these costs and will not finance these costs. Some of the costs paid at closing include:

  • Down Payment (Minimum 5%)
  • Difference Money
  • Title Policy Premium
  • Recording Fee
  • Closing Fee