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Many buyers have asked us questions that help them understand more
about the land they are interested in purchasing and how to go about purchasing it.
We are sharing these questions and answers with you and will continue to update
this page with more questions and answers. If you have a question and don't see it in
the list, please send the question to David Krulac: david@centralpennlots.com. FREQUENTLY ASKED QUESTIONS ABOUT LAND & LOTS
- Can I finance land by itself without building immediately?
YES, there are several banks, savings and loans, and credit
unions that finance land only. Generally, mortgage brokers, and mortgage bankers do NOT
finance land only.
What’s a "perk" test?
The "perk" test is phase two of the testing required to
determine if you can place a septic system on the lot. Before you can do a perk
test, the soil types are evaluated during a "probe" test (phase one testing)
where the testing looks for rock or other soils that will restrict the flow of water.
If the soil types pass the probe test, then a perk test can be done. A perk test
measures the time it takes for water to drain from six small holes. With proper
drainage, an on-lot septic system is allowed. Both probe and perk tests are required
by the Commonwealth of Pennsylvania for any lot or land that does not have public sewers
available. For more information on septic testing, contact the local Sewage Enforcement
Officer (SEO), Pennsylvania Department of Environmental Protection (DEP) or contact David
Krulac, david@centralpennlots.com or
(717) 731-9061.
Are there ever any large acreage lots (3 to 10 acres) with public sewer available?
YES, that’s possible but rare. Zoning
ordinances could affect the availability of large lots. For example, some
township zoning requires
the minimum lot size in a conservation areas to be 3 to 5 acres. Typically, however, where
zoning requires larger lots public sewer is not available. Another factor on large
lot size could be the land development costs, where land developers try to distribute
those high costs over a greater number of lots. The economics usually dictate where there
are public facilities the lot development costs are much higher and smaller lots are
required. However, though rare, it is possible to find a larger lot that has public water
and sewer available.
If there is no public water must I drill a well?
YES. Your mortgage lender will almost always
require a drilled well. Sometimes there is another source of water other than a drilled
well such as a spring, stream, cistern, dug well or another source of water. In general, lenders
(except for "portfolio" loans) will not accept other than public water or a
drilled well.
How do I reserve a lot?
There are several ways of reserving a lot, but
the one most often used is to write a standard agreement of sale.
How much deposit do I need to reserve a lot?
The amount varies depending on the seller of the
lot. For example, one of our prime developers requires a $1,000 deposit with the sales
contract regardless of the price of the lot.. Whatever the amount of the
deposit, sometimes 3-5% of the sales price, it is held
in escrow until settlement and is credited to your purchase.
How much total down payment do I need to buy lots or land?
If you are going to immediately build, your lender may require as
little as 3% down on the total package of the land and the house. This is true for
FHA or some other mortgages. In the case of VA mortgages, 0% down is possible. With
conventional house plus land mortgages, the lender usually requires a minimum of 5% down.
When you are buying land only with no immediate plans to build, many lenders require 10%
to 20% down. For further questions see your lender or contact David Krulac, david@centralpennlots.com or call (717)
731-9061.
Is owner financing possible?
YES and NO: it depends on the seller. Most developers do
not offer owner financing at this time. However, some sellers may assist the purchase in
other ways: 1. Seller helps with closing costs, 2. a small seller second mortgage, or
even, 3. a seller first mortgage. Sometimes we have some properties
available that may be owner financed.
Are mobile homes possible on any of the lots and land available through this Web
Site?
Nearly all of
the properties advertised here DO permit modular homes. Unfortunately,
many lots and land either by zoning
or deed restrictions do not permit single or double wide mobile homes.
What price ranges and sizes are your listed lots?
We have listed
buildable or "perked" lots for as low
as $9,900. Most of the
properties that we
have listed are priced from $29,900
and up.
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