Financing for Land

coolerguy12

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11:42a, 4/8/26

AG

Posted on Real Estate but not a lot of action over there.

Looking to spend about $150K on some land near me. I can't quite get it done with cash and even if I could we would be a little exposed for a couple years. What are my best options for financing? Goal would be to have it paid off within 2-3 years but want a longer term so my monthly commitment is lower.

I have plenty of equity in my house that a HELOC could cover it but is that a good option? I know I don't want a cash out refinance as my rate is in the 3s.

I got some preliminary quotes for a HELOC and closing costs were around $8000. That seems crazy to me but I have never done it before so I have no idea.

atmtws

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7:45p, 4/8/26

AG

Jay at AgRewards

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Nagler

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10:04p, 4/8/26

AG

Depending on what kind of land it is you should check out Capital Farm Credit.

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coolerguy12

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In reply to Nagler • 3:44a, 4/9/26

AG

I talked to them yesterday and wasn't disappointed. 15-20% down, rate in the 7s, and closing costs around $3K. Seems pretty reasonable.

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Mas89

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In reply to coolerguy12 • 7:48a, 4/9/26

AG

Patronage dividends return some of the interest paid on each loan over the years. A nice annual surprise even years after the loan has been paid off.

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coolerguy12

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In reply to Mas89 • 11:38a, 4/9/26

AG

Do you have details on this? She mentioned it on a call yesterday but I wasn't really sure how it worked.

LOYAL AG

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2:04p, 4/9/26

AG

You a veteran? The Land Board loans are pretty easy to do if you can afford the mortgage. Last time I looked the cap was $150k.

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mosdefn14

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2:40p, 4/9/26

AG

HELOC shouldn't have closing costs

Banks frequently offer teaser rates on those too if you'll pay it off quickly.

You can get a sub 5% draw on a securities line right now too.

SteveBott

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3:04p, 4/9/26

AG

Another option is check with the local bank in the area of the land. They like land loans and can be competitive

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rme

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In reply to mosdefn14 • 4:30p, 4/9/26

AG

mosdefn14 said:
HELOC shouldn't have closing costs

Banks frequently offer teaser rates on those too if you'll pay it off quickly.

You can get a sub 5% draw on a securities line right now too.

I got a HELOC last year from Amegy. I paid around $300 plus the appraisal fee and no other costs. Still haven't found any land to use it on.

Mas89

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In reply to coolerguy12 • 8:30a, 4/10/26

AG

Yes, it is a cooperative bank, which is owned by the members. Each year, a certain amount of the profit is returned to the members who have borrowed money from the bank. This is paid as a patronage dividend.
So basically you pay interest as you do on any other loan and get a portion of it back every year in the future, even after the loan has been paid in full. Great program.

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