Things to know before getting a land loan 

If wide open spaces and country roads make your heart race, there’s no better place for a full-time residence or weekend retreat. 

Nevertheless, financing a rural home can look very different than financing a home in the city. That’s where we come in. 

For more than 100 years, Capital Farm Credit has provided reliable credit and financial services for rural communities and agriculture. 

Before buying that perfect place in the country, here’s what you need to consider. 

Home + land 

Ask your lender if they can finance a home on acreage. Most mortgage companies typically finance 10 acres maximum. When financing larger land tracts, the home loan and land loan can be separated. 

Capital Farm Credit combines both the home and acreage into one loan, minimizing closing costs. 

Homes off the beaten path 

Determine if appraisers understand the value of a rural home. 

Within city limits, homes tend to be similar and close in proximity, making it easier to find comparable sale prices. However, not all lenders use appraisers who understand the value of acreage, a future home, outbuildings or unique infrastructures like barndominiums. 

Our experienced lenders rely on real estate appraisers who specialize in rural property. 

Property that produces 

Ask your local tax office whether your specific property has an existing agricultural valuation. This can result in lower property taxes. Does your property have potential to generate income? 

At Capital Farm Credit, our lenders consider agricultural income when determining the best ag financing option for you. 

Producing hay, timber, crops, livestock, or even honey are all examples of additional income seen in property purchases. Ensure your lender will finance a rural home without losing these advantages. 

Infrastructure & improvements 

Determine whether the property has electricity, a septic system, a well or municipal water, and internet service. If you’re building a home, adding additional infrastructure may need to be included in your budget. 

Ask a loan officer about adding fences, outbuildings, a pond or other improvements to your property purchase. 

Capital Farm Credit offers a variety of flexible loan options for improving homes and land. And when you’re ready to buy livestock and farm equipment, we can help with that, too. 

 There’s no place like home 

Capital Farm Credit is a family of experienced lenders equipped to finance your dreams of rural living and help make the most of your rural land purchase. Our knowledge and expertise make us your lender of choice to create the home you have always wanted. With offices serving 192 of Texas’ 254 counties, we commit to serve rural communities yesterday, today and tomorrow. 

If you’re interested in speaking with our advisory team, call 877.944.5500 or visit our website capitalfarmcredit.com