Is it possible to get "pre approved" for a rural land loan like you would a normal house loan? Anyone know what the going rate is (from experience) and the current terms? I was hoping for a 20 year note or maybe a shorter term with a lower interest rate. I have 20-30% for a down payment also.

yep

they are going to ask for 20%-30% down....but interest rates are about 5% right now.

contact someone at capital farm credit and they will be able to get you pre-approved.


what are you looking at buying?

Where are you located? I have a very good friend who is in the business and he can explain it to you.

Thanks! Not sure on the place quite yet. Been looking for over a year but missed out on the only two that have interested me so far.

I am in Dallas just north of the airport.

You might read the sticky thread above for alot info.

I closed with Capital Farm Credit in November. I got a 15-yr note that resets after 3 years at 5.9% with 20% down.

I don't think you're going to get 5%, and if you want to lock in rates, you're looking at closer to 7%. I'm paying off the land in 3 or 4 years, so I didn't care about the rate reset.

Only place I could get more than 7 year note was through the Texas veterans land board, 5% down and 30 years. All the banks wanted 20% down which was no big deal but they would only go 7 years.

I did my deal through Lone Star Ag Credit (New Boston office). Deal was 30% down, 20 year term, fixed for 5 years at 5.75%

We just had a couple of places contracted last week.
One guy got a fixed rate of 7.5% for 15 years through Capital Farm Credit, with 25% down.
Another got 6% fixed 5 years on 20 year amm. through Central Texas Farm Credit, with 20% down.
Both of these guys had been pre-approved for a loan.

Man the loan market has changed a lot!

Best I have seen is 5 yrs at 5.8% on 20 year amm. with 20% down. I would love to find a 7 yr 5.8 on 25 year amm. with 20% down but just can't seem to find it!

No one's loaning money long term at those rates right now. Financial Institutions aren't going to cut themselves short, when they know double digit rates are coming in the next few years.