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Splitting house out from land for Tax and Loan
#6543291
11/14/16 08:13 PM
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Joined: Jan 2007
Posts: 3,811
TxAg
OP
Extreme Tracker
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OP
Extreme Tracker
Joined: Jan 2007
Posts: 3,811 |
Hey guys-
Been researching buying land, and have a couple questions:
1) In the case where the land has a house on it, how do the taxes work? Say the property is Ag Exempt: do they tax the house at the local residential rate, and the remaining land at the exempt rate?
2) And, for loan purposes, will it look more like a traditional mortgage, or will it look like a land loan with significant improvements?
Thanks.
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Re: Splitting house out from land for Tax and Loan
[Re: TxAg]
#6543412
11/14/16 09:27 PM
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Joined: Dec 2007
Posts: 640
Twisted Mallard HC
Tracker
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Tracker
Joined: Dec 2007
Posts: 640 |
What you want to do is re-survey the property where it is the house and 1 acre and then the land could be set up with ag exemption.... I am a mortgage guy if you have anymore questions... Shoot me a PM....
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Re: Splitting house out from land for Tax and Loan
[Re: TxAg]
#6546779
11/16/16 10:20 PM
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Joined: Jan 2007
Posts: 3,811
TxAg
OP
Extreme Tracker
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OP
Extreme Tracker
Joined: Jan 2007
Posts: 3,811 |
Thank you Pintail, makes sense.
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Re: Splitting house out from land for Tax and Loan
[Re: TxAg]
#6557885
11/25/16 03:41 AM
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Joined: Aug 2011
Posts: 30
WIP Ranch
Light Foot
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Light Foot
Joined: Aug 2011
Posts: 30 |
If it is already ag exempt, the house is considered an improvement and nothing else needs to be done. If it has lots of land it will be in most cases considered a land loan and you will probably need 20% down payment. Loan rates are generally higher for this type of loan. Maybe 5 1/2%.
If you are requested ag exemption and have met all of the other qualifications, the appraiser will assign a value to the house and the property it sits on including the yard and you will be taxed at the normal residential rates.
Even if it is a farmhouse for a farm employee it will not be ag exempt.
You really don't need to pay the expense to survey unless you are going to finance the house separate from the land.
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