I’m lookimg at purchasing 20 acres of land , who would I contact for a loan or what steps would I need to take to start the buying process. I have great credit and would like to buy a piece of property .

capital farm credit... Good credit and a small piece like this is a very simple process..Anything under 300k is a "simple loan" process.. Fill out app..they will pull your credit and give you a answer pretty quick...They will order the appraisal...

Like above, Cap Farm Credit or we used Lone Star Ag and the dividend checks at the end of the year significantly reduced our effective interest rate.

What the going rates for land? Any specific agencies to use that y’all used befor?

Central Texas Farm Credit. Its a coop which means you'll receive dividends as long as the institution is doing well. Really boils down to lowering your interest rate. People I've dealt with at Central Texas Farm Credit have been excellent to work with. Figure on around 4-5% interest rates. https://www.centraltexasfarmcredit.com/

We've had several loans with Capital Farm Credit. You do get patronage checks at least once a year, and usually twice a year. One thing you need to know is that money stays in your account after you pay the loan off. We don't currently have an active loan with them but still have over 12k in our account. They will not refund that money but you still get a "profit sharing check" at least once a year at their discretion.

Have used Lone Star Ag twice. Both times simple. But you will need 20% down.

I am very confused? I've never dealt with Capital Farm Credit, but with Lone Star Ag, twice. Both times when I paid off the loan I got one more Patronage check, but there is no money left in my account. I've never heard of anything like that.

I used Capital Farm Credit for my land loan also. I got a patronage check in the mail in my second year and every year after that till I paid off the loan. I deposited that annual patronage check in my bank account and used it to make a land payment or even almost two some some years. But do not sure about anything left in an account.

That's the way it works. I spoke with them just last week and the lady told me that we will get a check this October "and many years to come". It's not a patronage check. She said it's a profit sharing check.

Usually a bank in the county you are purchasing the land will loan on it. Especially if it is a small town bank.

I guess they need to update their website then. I got my annual partonage check in late Feb or March IIRC.
https://www.capitalfarmcredit.com/aboutus/patronage

What exactly I’d a annual patronage check exactly?

Well with Central Texas Farm Credit it basically boils down to profit sharing in the coop. Your loan with them counts towards owning a piece of the company so to speak. If they are profitable the "shareholders/borrowers" receive a check. I've included a link to what was paid out for 2017 which was a record year for Central Texas Farm Credit. Although it was an actual payment it actually reduced the cost of your loan by 1.5%.
https://www.centraltexasfarmcredit.com/record-patronage-2017

.. Yes but many will only do a balloon so they can change the interest rate after 5 years.. Also a bank will report to credit.. Land banks do not...

So your saying a land bank loan doesn’t show up on a credit report? If so, why is that?

I used Capital Farm Credit as well for our 25 acres. The lady that helped me was EXTREAMLY helpful in all aspects of the buying process as well as putting me in contact with everyone I needed to make our land into a great getaway.

i have land notes at a normal bank, and another with capital farm. none of them show up on a credit report. they do not report it to the bureau from what I was told when I've asked

* If a substantial part of the land is to be left "natural", apply for AG Exemption ASAP. Wildlife Exemption is another option, but I am told it takes 5 years to get that exemption. *You have to re-apply every year by the end of March, or you lose it.

If I remember correctly unless you already have an exemption on say another piece of property you have to wait to get either type of exemption.

Property tax info directly from the source ---> Tx Comptroller

Personally, I would not buy land that does not already have an AG or Timber exemption. Just my worth.

..well you are lucky.. Regular banks have to report loans to Feds...every small town bank I approached said they had to report even a balloon on land...Good for you not getting it reported..BUT on a side note you cant write off the interest....

I dunno the reasons other than I like it... Now it does get reported to IRS so you can write off the interest...I think it may have something to do with ranchers and farmers not able to keep up with loans certain times of the year.. Could you imagine the farmers with bad credit???

As stated, if it doesn't have Ag or Timber I wouldn't do it.

Taxes and FINALLY getting Ag aren't cheap.

Trust me, I know now.

5.5-6.5 are normal rates w excellent credit I believe in just raw land for 20 years.

10-20 percent down.