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Typical Rural Land Terms

1,105 Views | 2 Replies | Last: 4 yr ago by Bitter Old Man
Corps_Ag12
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AG
Can someone give me an idea of rural land terms & rates? Are they similar to buying a home? Looking at starting the search for some property and want to have an idea before I reach out to capital farm credit or the like.

TIA!
Buck Compton
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AG
Less years, higher rates, large down payment requirements.

Everything is based on your financial situation, but for a 20-year loan on a starter chunk of property (~200k in Texas), probably looking at 20% down minimum @ 6-7% interest and about 1,200 monthly before taxes.

The interest rate goes way up the longer the amortization period (goes up much quicker than on a primary residence mortgage). I've found 10 years is the sweet spot for rate vs. affordability, but YMMV.

10 years at say 5% on a $200,000 property is still $1,700 monthly before taxes (after 20% down payment).

My rates may be off as I haven't been in the market lately. I'm sure one of our resident lenders can get you hooked up.
CapitalFarmCredit
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Look at our website capitalfarmcredit.com , find your nearest office and give them a call.
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Bitter Old Man
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Corps_Ag12 said:

Can someone give me an idea of rural land terms & rates? Are they similar to buying a home? Looking at starting the search for some property and want to have an idea before I reach out to capital farm credit or the like.

TIA!

Just call Capital Farm Credit and ask them. They will tell you what their current terms are and probably give you some good direction. Its no skin off their backs. That makes a lot more sense than asking an internet board.
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