Interest rate on land loan

anyone bought land recently? Just curious about what the interest rate is on rural land in Texas. I am looking for at some land around 150k to 200k and I do have good credit.

I have very good credit and will be closing on 319 acres in the next 2 weeks. I got 4.875% on a 15 year fixed.

Congrats on your upcoming closing!

In reference to the post, I sent you a PM.

Go with a land bank and consider the patronage rebate when you calculate actual rate. We used Central Texas Farm Credit and they've been great. Rate in high 4s, but with patronage we get an annual profit sharing "rebate" that makes the actual cost of money much better.

Exactly who I recommended. Each farm credit agency has their own territory and have been great to work with for years!

Closed little over a year ago and got 5% fixed for 15 years(first time buyer), used the local bank in the town close to the property and was really pleased with the customer service.

Go with any land bank or AG credit place. Only problem is that they require 20% down. I've used them twice. Two different ones as they generally have a county or two that they cover.

I'd always at least check with a few local banks, our last 2 purchases they've beaten the land bank/farm credit places.

Really, I guess it pays to shop around. My son in law is a bank president and he could not get with in 2% of what the land bank gave me, however that was 5 years ago. But checking all your loan options is always a good ideal.

Thats why I said " at least check with a few local banks " local to the area you're buying.

Not at all knocking the Ag credit / land bank types, we've used them too.

We used Peoples state bank in Rocksprings and they were much easier to get approved from and had lower rates then CFC.

Good info here. Thanks guys.

when you factor in the patronage I've never seen any bank beat a farm credit bank. I've seen some farm credit banks beat other farm credit banks. But never a conventional bank. Patronage easily knocks off 1-2% annually. And they are already lower than other banks before that.

It does pay to shop. Shopping for money is almost as important as researching for land. But I've been in the ranch buying selling business since '96 and have bought and sold ranches in 8 different counties. And if you beat 4.1 or 4.2% right now with an annual patronage check that lowers that to 2.1-3.1% you let me know. I'll go buy some more land.

Most of the land banks are in the upper 5’s after the latest Fed rate hike. I chose Graham Savings and Loan on a 15 year fixed at 4.875% bc I look at it as a “bird in the hand” type deal. I’d rather hold the extra $ all year as opposed to having the land bank hold it and return a little bit to me each year.

Also, if you are in the market to buy, Graham Savings will allow you to only put 15% down if needed.