New home build financing

[MarkV]

Me and my wife are in the final stages of getting ready to build a house. Last year we bought 10acres where we are going to build. I now that after we have our plans finished and then get bids from builders and make our decision, it will be time to go to the bank for a construction loan. I understand how all of that works but after that is where I have a question

The bank we plan to use for the construction loan, doesn't do 30year fixed rate mortgages for the final loan. Also for the best rates I know you normally have to go to the secondary market. However I want to keep my 10acres ag exempt and I have been told I cant go secondary and stay ag exempt. Does anyone know of a bank where I can go ag exempt and still get good rates on a 30year fixed loan for us to wrap the mortgage and land into when the house is finished?

[deerplanter]

I'm no expert but from what I remember your best bet is to homestead an acre at your house and Ag exempt the rest.

[CabezaBlanca]

Depending on what county you're in I'm not sure you can keep your ag exemption. Most counties require a minimum of 10 acres for ag. You will have to pull some of the property out of ag for the house so that puts it under the minimum.

As far as your loan question, call Capital Farm Credit. They are great to deal with and can do your construction loan as well.

[solocam_aggie]

Yeah its crazy that some lending companies wont allow you to keep an AG exemption for financing. First time I heard of this I called BS. Sure enough.

Im not AG exempt, so I cant reference our recent build, but there has to be options out there.

[MarkV]

Depending on what county you're in I'm not sure you can keep your ag exemption. Most counties require a minimum of 10 acres for ag. You will have to pull some of the property out of ag for the house so that puts it under the minimum.

As far as your loan question, call Capital Farm Credit. They are great to deal with and can do your construction loan as well.

I am almost certain ours is 5 acre minimum

The only knock against capital farm is their rates are pretty high. I know that is because they are a coop and pay dividends that can be put back into your loan and it is like lowering the percentage rate but last time I looked at it the rates still wound up being higher

[bowtechbandit]

maybe when all said and done, break out the house and an acre to put on mortgage, put the rest on separate note. this is how I did mine

[hunt247]

maybe when all said and done, break out the house and an acre to put on mortgage, put the rest on separate note. this is how I did mine

this

and call

https://www.centraltexasfarmcredit.com

https://www.agtexas.com

https://www.lonestaragcredit.com

[Austin]

I originate and sell mortgages in the secondary market with ag exemptions all the time. It is absolutely not an issue. Your county appraisals district will kill the ag exemption on 1 acre and the home but you should still qualify on the remaining 9

[warrington]

7

7 acres here

[MarkV]

I originate and sell mortgages in the secondary market with ag exemptions all the time. It is absolutely not an issue. Your county appraisals district will kill the ag exemption on 1 acre and the home but you should still qualify on the remaining 9

Pm sent

[Tex_Cattleman]

Doesn't matter whether it's Ag value or not. Matters what the primary use is.

PM sent regarding construction loan.