Everything You Need To Know

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.


  1. Can I finance land by itself without building immediately?
  2. 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.

  3. What’s a "perk" test?
  4. 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.

  5. Are there ever any large acreage lots (3 to 10 acres) with public sewer available?
  6. 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.

  7. If there is no public water must I drill a well?
  8. 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.

  9. How do I reserve a lot?
  10. There are several ways of reserving a lot, but the one most often used is to write a standard agreement of sale.

  11. How much deposit do I need to reserve a lot?
  12. 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.

  13. How much total down payment do I need to buy lots or land?
  14. 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.

  15. Is owner financing possible?
  16. 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. 

  17. Are mobile homes possible on any of the lots and land available through this Web Site?
  18. 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. 

  19. What price ranges and sizes are your listed lots?
  20. 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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Contact David Krulac (717) 731-9061 or david@centralpennlots.com
David Krulac, Broker #RB066398, Broker at
David Krulac Real Estate LLC located at 100 York Road, New Cumberland, PA 17070 USA (717) 774-2020
Content last updated 03/20/08
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