Getting a Lot Loan from AgCredit: Your Path to Home Construction

Finding the perfect piece of land to build your dream home is an exciting milestone. Financing the purchase through a lot loan from AgCredit is a smart move that can pave the way for your future home construction. “Using the same lender for both your lot and construction loans can lead to a more streamlined, cost-effective, and less stressful experience when you are ready to build”, says Neeta Shuff, AgCredit Mortgage Loan Originator.

A lot loan is financing designed specifically for purchasing vacant land on which you intend to build a home. AgCredit offers flexible terms tailored to meet the needs of individuals looking to invest in land for future construction. You can work through the process of getting a lot loan in four simple steps. 

• Application: The first step is to submit an application to AgCredit. This involves providing details about the land you wish to purchase, your financial situation, and your plans for future construction.
• Approval: Once your application is reviewed, AgCredit will assess your eligibility for the loan. Factors such as your credit score, income, and the land's value will be considered.
• Loan Terms: Upon approval, AgCredit will offer you loan terms, including the interest rate, repayment schedule, and any associated fees. It's important to review these terms carefully to ensure they align with your financial goals.
• Closing: After accepting the loan terms, you'll proceed to the closing process, where the loan documents are signed, and the funds are disbursed to complete the land purchase.

Once you have secured your lot and are ready to begin building, AgCredit offers the option to roll your lot loan into a home construction loan. This streamlined transition is designed to simplify the financing process and provide continuous support throughout your home-building journey. 

“We are not starting from scratch with the lending process, which saves a lot of time. It’s less stressful dealing with just one lender and not coordinating between two different lenders”, says Neeta. 

There are several reasons why it’s beneficial to work with AgCredit for both loans, including the following:

• Competitive Rates: AgCredit offers competitive interest rates on both lot and construction loans, helping you save money over the life of your loans.
• Flexible Terms: With flexible repayment options and terms tailored to your needs, AgCredit ensures that your financing aligns with your financial goals and home-building timeline.
• Expert Guidance: AgCredit provides expert guidance throughout the entire process, from purchasing your lot to completing your home. Their experienced loan officers can help you navigate any challenges and make informed decisions.
• Streamlined Transition: Rolling your lot loan into a construction loan with AgCredit simplifies the financing process, reducing paperwork and ensuring continuous support.

“Since we have all the required information for the lot loan, it’s a very easy payoff process to roll the lot loan into the construction loan, leaving you with the ease of having just one loan to worry about”, adds Neeta.

Securing a lot loan from AgCredit is a great first step towards building your dream home. By rolling your lot loan into a home construction loan, you can benefit from a seamless financing process and expert support. Whether you are purchasing land or constructing a new home, AgCredit is committed to helping you achieve your goals with competitive rates, flexible terms, and personalized guidance. Take the next step towards your dream home with AgCredit and turn your vision into reality.