We're looking to buy rural land soon. Not sure of the exact purpose (Hunting, Building, Combination). I'm comparing financing options. From what I see, Texas VLB gives you the option to have a low down payment but a higher interst rate at 6.95%. Most of the other places I've seen require a larger down payment but have interest rates sub 6%.

I'd like to hear experience and recommendations from the veteran "veteran" land buyers out there. I've use Texas vet for a home before but have zero experience with land buying.

There used to be a loan size limit for the Vet loan so check on that. Otherwise you have the basics covered. Down payment vs interest rate

Watching to read what TVLB requirements are and TexAgs posters' replies. I have pretty good idea of what Capital Farm Credit requires and can offer.

I did have a hard time finding Capital Farm Credit's advertised rate. I spoke with an acquaintance who got 4% five years ago.

Land banks do not advertise rates like some other banks. There are a variety of risk factors unique to each loan and borrower. They can probably give you a range based on those factors but at the end they need to assign a risk vs return to every loan

TVLB rates are 7% if I recall.

I used to think that was insane, but with consumer inflation running at 7-10% (depending on source), it doesn't shock me like it used to.

Here is the Texas land board site: https://vlb.texas.gov/loans/land-loans/index.html

They will lend up to 150k at 6.95%. Sounds high, but it is a 30 year fixed term with 30 year amortization and will go up to 95% loan to value as you point out which most land loans will require more down then that. So, it can be useful especially if the idea is to build relatively quickly in which your construction loan will pay off the land loan.

SteveBott said:

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Land banks do not advertise rates like some other banks. There are a variety of risk factors unique to each loan and borrower. They can probably give you a range based on those factors but at the end they need to assign a risk vs return to every loan

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Exactly, thanks Steve. We would be glad to discuss down payments, patronage dividends, loan products, amortizations, fixed rate periods, and rates. Please give us a call.

alamogeorge said:

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I did have a hard time finding Capital Farm Credit's advertised rate. I spoke with an acquaintance who got 4% five years ago.

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This is what I was quoted for fixed rates. ARM's are around 4.5

Did you fill out an application to get the quote?

SteveBott said:

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Did you fill out an application to get the quote?

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Yes.

Has the VLB finally quit using Contracts for Deed, or do they still use them?

Yesterday said:

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alamogeorge said:

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I did have a hard time finding Capital Farm Credit's advertised rate. I spoke with an acquaintance who got 4% five years ago.

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This is what I was quoted for fixed rates. ARM's are around 4.5

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Nice!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Was that with Capital Farm Credit?

Aggiehunter34 said:

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Was that with Capital Farm Credit?

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It is