Your borrower has approached you to purchase a piece of land. Getting the right agricultural land loan to finance their dream means understanding the land’s condition and your client’s goals for the property.
This is where United Ag Lending excels. As a lending partner, we’ve originated these loans for years, helping loan officers across the country navigate the rural loan process.
Read on for a quick understanding of agricultural land types and uses that qualify—or disqualify—a client.
What Kind of Land Are They Buying?
The first step to success is understanding the 3 types of land that generally qualify for agricultural loans.
1. Raw Land
This type of land has no utilities available, no structures built on it, and no recognized road access.
2. Unimproved Land
This land may offer some improvements, such as road access or water, but it still lacks other improvements (such as electricity and/or natural gas access).
3. Improved Land
This land has—at minimum—water, sewer, electricity, and road access.
What Are Your Client’s Plans?
To secure the right loan, United Ag Lending needs to know how your borrower plans to use the land. Agricultural use includes:
- Hobby farms
- Equestrian property
- Vineyards
- Ranch land for horses, sheep, and cattle
- Dairy farms
Our Land Loan Requirements
We can secure an agricultural land loan for clients who meet basic financing requirements:
- Minimum 680 credit score
- Minimum 10 acre purchase
- It’s rural land (no lot loans)
- $500,000 minimum loan amount for commercial use (they can borrow a lower amount if non-commercial)
We approach loans on a case-by-case basis, so we tailor each package to your client’s unique, specific needs.
Purchasing Recreational Land
We can do loans for recreational land.
How Property Location Affects an Agricultural Loan
Any agricultural land loan must have a minimum size of 10 acres. This land must exist in a rural area distinctly separated from neighborhoods.
We don’t provide financing for:
- Lot loans
- Neighborhood properties
- Land solely used as a build site
Let’s Talk About Your Client’s Goals
United Ag Lending partners with loan officers, handling the difficult rural nuances so you can focus on the borrower relationship. We help you quickly and accurately determine whether rural real estate funding works for your client’s situation.
