This content is a summary of the basic information on this type of loans and the purpose for which they are loaned out. It may include other factors like where to find them and how to choose the best company offering such loans.
Land and ranch loans are loans given out to people who are considering purchasing agricultural real estate or ranch properties. One can borrow a loan for purposes of purchasing land, making improvements, carrying out irrigation development and/or refinancing the high interest loan. The credit program uses the borrower’s real estate or ranch as a security for production of wheat, cotton, corn and other crops. The selected companies offering the loans also finance dairy and horse facilities plus other specialty agricultural projects.
Most lending institutions usually have extended maturities that come with either adjustable or fixed term rates. The land and ranch loans approval is based upon the institution’s underwriting standards and such information can be found on the local lending institutions or visiting the selected online sites offering the related services. The available loan products in this kind of institutions are designed to fit the needs of both a first time farmer and an established farmer or rancher.
While there are conventional lenders who can deny the borrowers the loans may be due to agricultural zoning, schedule F income, AG-exempt property status and acreage limitations, other institutions will usually see the issue through and provide a way through which they can help their clients. Loaning companies or institutions that have specialized experience in the market for a number of years can be the best the client can go for. Such companies have a deeper understanding of the processes that are involved in obtaining the loans and the specific customer needs of the customers from the given agricultural community one might be in.