Lenders and Home Site Loans

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Financing options for buying now and building later.  

Home site loans are a popular financing option for clients looking for the perfect property to build their future dream home. Whether purchasing a two-acre lot or one with many acres, it’s important for your clients to know the nuances of different lenders’ loan terms and conditions.  

Farm Credit Services of America (FCSAmerica) has the experience and expertise to meet a wide-ranging scope of lending needs. From properties used for agricultural production to recreation or a parcel of land with a good view, FCSAmerica can help your clients realize the following benefits of working with a portfolio lender who specializes in financing homes in the country.  

1. Use Land Equity for Construction  

One advantage of home site financing with FCSAmerica is having the ability to purchase a farm, lot or acreage when the location is available. Borrowers are not only protected from rising land values, they also have an opportunity to leverage any land equity for future home construction, possibly reducing money down.  

2. No Acreage Limits  

While there are many lenders who offer lot loan programs, some shy away from financing home sites that don’t fit within certain thresholds, referred to as “nonconforming” properties. FCSAmerica can finance any sized lot and is familiar with rural features such as outbuildings, crops or septic systems that often other lenders aren’t.  

3. Easy Application  

Home site loan applications with FCSAmerica are hassle-free and generally require the same financial information as other loan packages including the past two years’ tax returns, most recent paystubs and an updated balance sheet. No construction plans or contracts are needed until applicants are ready to secure financing for new home construction.  

4. Competitive Rates and Terms

FCSAmerica home site financing features attractive rates, flexible terms and personal service. With the help of a consumer lending officer, applicants choose the financing options that best fit their needs.  

5. Flexible Minimum Construction Periods  

Although many applicants are ready to build within five years after buying their home site, FCSAmerica can accommodate needs beyond that timeframe, especially when a property includes agricultural production with income involved. No matter the circumstances, home site financing with FCSAmerica is a convenient option for any borrower looking to bridge their rural property purchase with new home construction.  

When it comes to buying land and building a new home, working with the right lender is as important as finding the right property.

Click here for more information about rural home construction and lot loans.

Iowa Association of REALTORS

This article was written as a collaboration of IAR Staff members or invited subject matter experts.