COMMON GROUND BLOG

Find trends and outlooks, education and more on financing rural America from Farm Credit Services of America.

More Content

Financing Options For Buying Now and Building Later.

rural home lotThe perfect home in the country often begins with finding the perfect property. With a home site loan, you can buy your land now, and build your dream home later.

Home site loans offer many advantages. But some of them require finding the right lender for your project.

Use Land Equity for Construction: Buying a farm, lot or acreage when the location is available can protect you from rising land values. It also is an opportunity to leverage any land equity for future home construction, possibly reducing your money down.

No Acreage Limits: While many lenders offer lot loan programs, some shy away from financing home sites that don’t fit within certain thresholds, referred to as “nonconforming” properties. Talk to lenders about their ability to finance any sized lot and their familiarity with rural features, such as outbuildings, crops or septic systems that often other lenders aren’t.

Straightforward Application: Home site loan applications generally require the same financial information as other loan packages, including the past two years’ tax returns, most recent pay stubs and an updated balance sheet. No construction plans or contracts are needed until applicants are ready to secure financing for new home construction.   

Flexible Construction Periods: While many home site borrowers are ready to build within five years, it’s important to have flexibility, in case of delayed dreams. Make sure you understand your lender’s expectations and ability to accommodate your schedule. This is particularly important for agricultural producers, whose property purchase also might be tied to their agricultural production and income. 

When it comes to buying land and building a new home, working with the right lender is as important as finding the right property. Click for more information about rural home construction and lot loans.

COMMENTS

Load more comments
Your comment has been received and is being reviewed.
avatar

Comments are moderated and reviewed before they are posted on the site. View our terms of use.

YOU MIGHT BE
INTERESTED IN

May 19, 2022 | Country Living Homes

Managing New Home Construction Costs

As experts in rural home financing, our consumer lending officers advise homeowners on the best practices for controlling construction costs at every stage.

Feb 14, 2018 | Country Living Homes

Home Show Season: Learn About Financing Your Rural Home

We have a list of home shows where our consumer lending officers will be on hand to help explain our financing options for rural homeowners.

Mar 18, 2021 | Country Living Homes

More People Seeking a Piece of the Country

Sportsmen, always on the hunt for land, want a quick and safe getaway during the COVID-19 pandemic. Kitchen counter commuters want a home that can accommodate work, school and home life.

Ready to Talk?

Contact us if you have questions or need more information. Fill out the form, or connect with your local office using the Office Locator.

FCSAmerica serves farmers, ranchers, agribusinesses and rural residents in Iowa, Nebraska, South Dakota and Wyoming. For inquiries outside this geography, use the Farm Credit Association Locator  to contact your local office.