Looking at a 33 acre property which has different building sites but no house at this point. There’s a large barn with an attached apartment and then a separate indoor ring and various run-in sheds. Just buying the property as-is before a house is built, anybody have ideas for where I should look for financing? I think Farm Credit is an option that I’ll have to look into but I’m interested in any other outside the box suggestions.
I work for Farm Credit, so of course I must suggest it!
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We also used Farm Credit, they were pretty good to work with.
We have used Farm Credit as well in the past and were very pleased. We have also used a bank that was local to the property and been just as happy. As long as the bank normally finances rural properties you should be fine.
Thanks for the suggestions. Will follow up.
Are you planning on building any time soon? I bought a property with a barn and nothing else, no water or power, and I used a construction loan. Once the house was built it rolled into a conventional.
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I used a local bank which had much lower rates than Farm Credit. With a construction loan, it helps to have a mortgage officer who knows the area.
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It’s difficult to find someone other than Farm Credit to finance property with no house.
Try not to faint when they tell you the interest rate.
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I would check your state and county regulations on barns with attached apartments. Where I live they are no longer code. I’m not sure if any have been grandfathered in or not. Something to consider if you’re planning to use for live-in help or to live in yourself(s). That could affect any future financing and insurance issues down the road
I went to the best credit union in my area to buy my 26 acre property. It was relatively painless, they required slightly less down payment than what farm credit wanted, and gave me a decent interest rate.
just a thought but if OP has a primary home they might be able to refinance it now at rate well under 3% with cash out … we have several hundred thousand in equity that the banks keep trying to get us to cash out
I have had very good experience with Farm Credit. That being said, their loans and programs have changed over the years. We are building on our farm property and probably will not use them because they really don’t have a program that meets our needs. However, there is a beauty about Farm Credit. You can call their office and talk to a loan officer without having to apply for a loan. I got GREAT advice from Farm Credit when I first bought my farm about a lot line adjustment which made the loans possible. I have talked to my loan officer about the new plans and she really does not think they have the program I need. I love the fact you can ask them questions and they will answer you even before you take out a loan. I have not had other lenders behave that way. When it comes to building, it all depends on the appraisal of the property and the loan to value ratio. But definitely talk to Farm Credit.
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