How Do I Finance That Tract of Land?

Many people recognize the importance of diversifying their investment portfolio and that may mean investing in some land (timberland, recreational, agricultural or maybe that old farm you would like to retire to).  You may have the cash or maybe you need some financing. A lot of the conventional banks just don’t like financing LAND!  There are banks out there that that finance LAND and most are members of the Farm Credit system. These were previously referred to the Federal Land Banks. 

Every loan is different and the specifics depend on your credit history. Generally on smaller loans they generally require a 15% down payment and will usually finance the property for 15 years. For larger loans, usually over $200,000 they require a larger down payment but may extend the term to 20 years. One interesting thing about these loans, they have a +-20 year history of rebating +-25% of the interest paid in the form of a dividend check each year which reduces your effective interest rate (No guarantees but a good track record).

Also as you can see from the above map, the Farm Credit banks work different counties so it is impotant to contact the bank that provides financing in that county.

To see my listings visit AllSouthLandandHomes.com Buying or Selling LAND? Contact G. Kent Morris, ALC, RF  @706.457.0090