Farm & Pasture Land Loan FAQ
What type of land do you finance?
We finance all types of land and land improvements used for agricultural purposes. We also offer financing for recreational land, and rural home lots and acreages through Rural 1st®.
What are your interest rates?
We offer competitive fixed-, interim-fixed, variable- and adjustable-rate loans. If your financial needs change, you can convert a variable-rate loan to a fixed-rate loan. Fees may apply.
To find out more about interest rates, try our new online application. It takes about 10 minutes to complete – and you will receive a response within three business hours.
What terms do you offer?
We offer unusually flexible terms, including long-term options. Our products can be fixed to the maturity of the loan, intermediate fixed term or variable, either through the entirety of the loan or locked at a time of your choosing. All loans have the flexibility to mirror payments with income flow, ranging from monthly to annually, and you can make pre-payments on principal, all as it aligns with your cash flow.
What payment schedules do you offer?
You can choose monthly, quarterly, semiannual or annual payment schedules to meet your cash flow expectations. We also offer fully or partially amortized loans, and decreasing, even or accelerated payment schedules.
What are your down payment options? What is needed the day of auction or sale?
Down payments, earnest money or deposits can range from 5% to >20% down day of auction or upon entering a purchase agreement. In some instances, all or a portion of the down money may be non-refundable. Call 844-888-0858 with questions or to discuss further.
What about loan fees and closing costs? Who covers closing costs?
We have minimal loan fees, including no application fee.** We also offer loans without prepayment penalties after the first year.
Fees associated with real estate often include title work, appraisal, abstracts, filing/recording, flood determination and others. Fees are the responsibility of the buyer unless otherwise outlined or negotiated.
**Does not apply to farm construction loans or Rural 1st loans.
What is needed to complete a loan application?
Real estate financing decisions are made on a mix of information, which may include a credit bureau report, statement of financial position (balance sheet), income statement (tax return) and/or projection. If you apply online, you’ll enter information about the land you want to purchase, the type of loan you desire and the applicant’s assets, liabilities and income.
How long does it take to process a loan application?
We offer quick decisions on loan applications. If you apply online, we provide a response within three business hours. The online application takes about 10 minutes to complete.
Does a loan approval cover all offers I make or do I need a new approval for every offer?
Approvals are an assessment of financial position (creditworthiness) with considerations of the new assets/debt. Often, like assets/debt do not need a new loan approval. Significant changes to asset, debt, income potential, collateral, etc., may require a re-review of creditworthiness and decision.
How long does it take to close on a land loan?
Property closing guidelines are most often outlined within the terms of the sale. Closing can occur as quickly as 10-15 days and go out as long as 45-60+ days after an offer is accepted.
Closing is impacted by method of purchase (cash or loan), available collateral or collateral requirements, title work or abstract availability/need and agency conducting, existing leases or state lease statute, access/easement needs/requirements and more. Consult the auction company, Realtor® or seller’s agent to discuss closing terms and timeframe.
What resources do you have to help with land purchase decisions?
Our loan payment calculator is a great tool to help you understand how much you’ll be paying for the land. You can calculate payments based on the principal amount, interest rate and term of the loan. Factor in your local real estate tax rates and you’ll have a realistic idea of the cost of owning the land.
A great way to figure out if you can service the debt associated with a land purchase is to run some scenarios using our affordability calculator. Quickly try different combinations of loan terms, commodity types, yields, prices and down payments to find out if a land purchase is feasible for your operation.
What should I look for in a land lender?
Choose a lender who is knowledgeable and experienced in financing agricultural land. An experienced rural lender can offer advice on agricultural-use tax exemptions, environmental factors and insurance sources that an urban or out-of-state lender might not. Our experienced local financing teams are highly specialized and will work with you to determine the best loan for your farm or ranch.
(LEGAL FOOTNOTE – OUTSIDE Q&A)
Loans subject to eligibility and credit approval. Terms apply, see fcsamerica.com/terms for details.
Country Home & Acreage Loan FAQ
What types of financing does Rural 1st offer?
Farm Credit Services of America is proud to offer home lending through Rural 1st. Rural 1st can finance every phase of your move to country living — from buying land and constructing your home, to expanding, adding outbuildings and making improvements over time. Rural 1st offers home loans, lot loans, recreational land loans, construction loans and home equity loans.
What makes Rural 1st different from other lenders?
Rural 1st provides custom financing for rural property purchases and construction projects, and has the experience and focus on rural lending to offer loans and financing packages tailored to your specific needs. With highly skilled team members and efficient systems, you can expect a streamlined loan process.
It's difficult to find a home loan for a rural property. Can Rural 1st help?
Rural 1st offers financing for purchasing or refinancing your home with a variety of fixed- and adjustable-rate options — like a 15/30 adjustable loan that offers the security of a longer fixed-rate period, along with a lower interest rate*.
Rural 1st can lend on homes and properties in rural areas. Both the acreage and improvements (homes and barns on the property) are valued. You can also choose the down payment option that fits. Many lenders require a large down payment to avoid Personal Mortgage Insurance (PMI), but at Rural 1st you can put down less with no PMI.
*Provided that eligibility requirements are met. All loans are subject to credit approval and eligibility. A $200,000 loan would require 15% down payment with 360 equal payments of $954.83 at an APR of 4.08%. Assuming $2,000 in closing costs. Rates subject to change without notice. Rate as of 8/2/2019.
I want to build my own home from the ground up. Does Rural 1st offer financing to do that?
Yes. At Rural 1st you can go from construction to permanent financing with one simple loan package — refinancing is not required when the project is complete. The land you’re building on rather than only the dwelling value can be used as equity for your down payment**, so you can maximize the amount of your financing. And during the construction process you have the option to lock in your loan with variable- to adjustable- or fixed-rate financing.***
**Subject to review and approval. All loans are subject to credit approval and eligibility.
***There is a $500 fee for a one-time close conversion to permanent fixed rate financing.
Can I choose my own builder?
Yes. Choosing a contractor is your decision, and Rural 1st will work with your choice. If you have experience and well-documented plans, you can even be your own self-contractor.****
And you can take up to one year to complete your project. Many lenders require you to finish building within a six-month window. At Rural 1st you can take up to a full year to complete your project — allowing time for weather and schedule delays.
****Subject to restrictions.
We want to buy a property for fishing and hiking, not to build a home. Can Rural 1st help?
Rural 1st lends on bare land for recreational purposes with a minimum of 10 acres that includes at least five acres of cleared land or 20 acres of wooded land.
Rural 1st offers the security of a fully fixed-rate loan, as well as adjustable-rate options to choose from. Loans are truly amortized with no balloon payments, and you can choose the term and down payment that are right for you.
I want to make improvements to my country home or property. Does Rural 1st offer financing to help me do that?
When you’re ready to buy more land, build a barn or outbuilding or make home improvements, Rural 1st can help with a home equity loan. We make the process as simple as possible. Once your loan has closed, it’s easy to access your funds with convenient drafts and online transfers.
Rural 1st offer flexible payment options, so you can make interest-only payments or principal and interest payments any time — without pre-payment penalties or fees. And as you repay your loan balance, your credit line is replenished, so you can keep using it for additional expenses.
How do I apply for a Rural 1st loan?
Rural 1st offers a streamlined process and 24/7 personal service every step of the way. Apply online or contact a Consumer Lending Officer at 1.844.GO.RURAL.
(LEGAL FOOTNOTE – OUTSIDE Q&A)
Rural 1st® is the tradename for the consumer lending division and a registered trademark of Farm Credit Mid-America (MNLS ID #407249). Rural 1st is also available to consumers within the territories of participating Farm Credit System Associations, including Farm Credit Services of America (NMLS ID #579135). All loans subject to credit approval and eligibility. (EHL logo)
About Farm Credit Services of America
Who is Farm Credit Services of America?
Farm Credit Services of America is a mission-driven, customer-owned financial cooperative dedicated to serving rural America. We are a leading provider of credit and insurance services to farmers, ranchers, agribusinesses and rural residents in Iowa, Nebraska, South Dakota and Wyoming.
Owned by more than 50,000 stockholders, Farm Credit Services of America has 42 local retail offices throughout the four-state area. Learn more at fcsamerica.com.
How can I benefit from financing with Farm Credit Services of America?
Agriculture and rural financing is all we do. Along with our attractive rates, unusually flexible terms and cash-back dividends, our financial and lending officers have an unsurpassed expertise and understanding of the unique aspects of rural property financing.
What does it mean to be a customer-owner of Farm Credit Services of America?
When you finance with Farm Credit Services of America, you become a customer-owner. Along with having a voice in what we do, our customer-owners receive cash-back dividends, a unique opportunity to share in net earnings. The more eligible business you have with us, the more you can benefit from our patronage program.
A significant annual benefit, customer-owners have been paid more than $1.7 billion in cash-back dividends since 2004.*
*Cash-back dividends are based on eligible loan volume and Association financial results. Prior distributions should not be interpreted as guarantees of future performance