After being away from living on the land for over 17 years, we started getting serious about getting back to it.  The first thing we tackled was a budget - we needed to get out of debt and save as much as possible.  We found out the hard way just how much we would need to save when our first land contract failed. 

We had applied at our local credit union for a "pre-approval" on a 15 year mortgage.  We were pre-approved.  At the time I applied I told them we were looking for land.  Everything seemed fine. 

We put a contract down on the place we wanted and it got as far as the appraisal when we got the call that said "we don't loan money on land".  This was after they had the contract in their hands for 2 weeks and had ordered the appraisal, etc.  The contract itself said "contract for the purchase of a farm".  We contacted the seller's real estate agent.  Explained the situation and said we would continue our search for financing.

We found the Farm Credit Services and Farm Services Agency and began to work with them.  To qualify for their 5% down we would need to be approved with a farm plan.  After much discussion and even an onsite meeting at their offices, we were approved.  That was a Friday afternoon when we got word of our approval by the agent.  Monday, he calls and says that after more checking we had not been farmers the last 3 of 10 years so we did not qualify. 

We felt horrible.  Was their no way to get financing?  Of course there was - we just needed 20% down now instead of 5%.  That changed everything.  We weren't even close. 

So budget, save, budget, save is our motto.  In the meantime, we keep looking at other properties but so far nothing has come close to the place we originally saw.