Financing Your Land

How much land can I afford?

Establishing a budget for your land purchase is key - let's do some ball-park, armchair budgeting... play with these mortgage calculators to get a feel for your payment schedule.

MortgageCalculator.org

BankRate.com

Bloomberg Mortgage Calculator

What are some land financing options?

Land can be purchased in many ways.

- There's always the "traditional" loan approach.

- Some sellers do offer owner financing.

- If you have considerable equity in your home you could consider an equity line of credit.

- Also, you can purchase land by transferring existing funds from an IRA account to a self directed IRA account. Usage restrictions apply. The custodial firms below offer these services and have some great background and frequently asked questions on their web sites. Check it out!

Equity Trust Company   Security Trust Company   Guidant Financial Group

Pensco Trust Company   Asset Exchange Group

- One could also consider a farm loan from the US Department of Agriculture's Farm Service Agency. Here's some info from their web site...

"FSA makes direct and guaranteed farm ownership (FO) and operating loans (OL) to family-size farmers and ranchers who cannot obtain commercial credit from a bank, Farm Credit System institution, or other lender. FSA loans can be used to purchase land, livestock, equipment, feed, seed, and supplies. Our loans can also be used to construct buildings or make farm improvements."

U. S. Department of Agriculture, Farm Service Agency

You may want to seek the advice of your accountant and/or financing advisor before utilizing any of the approaches above.

I'm interested in a traditional type loan - where can I look for financing?

One place to start may be with your existing bank where you have credit history and an existing relationship.

Since many of our properties are in rural locations, another option is to check out smaller, local banks near the property you are purchasing.

Lastly, these organizations "specialize" in land financing and generally have branch offices in the rural areas the we service.

 

Alabama

Alabama Farm Credit

First South Farm Credit Services

 

Georgia

AgFirst Farm Credit

AgGeorgia Farm Credit

 

Note: Generally, loan officers in these financial organizations can give you a quick "pre qualification" analysis... this can be an invaluable tool to help establish a budget before searching for land.

 

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