“Who loans money for land in Alabama?” We get this question quite a bit from people looking to make their first rural land purchase. There are several great lenders that focus almost completely on rural land loans and farm production loans. These lenders understand the many facets of what is involved with making a purchase of timberland, row crops, poultry farms, a hunting or recreational tract, or potential country home site. The traditional land lenders that we work with on a daily basis are Alabama Ag Credit, First South Farm Credit, and Alabama Farm Credit.  The USDA Farm Service Agency offers special programs for first time and historically underserved farmers.

Land loans operate on  the same general premise as a normal mortgage, but with different terms. Each lender will have their own programs and loan requirements, but the down-payment is typically 15% to 25% of the purchase price. The interest rate is usually slightly higher than a residential mortgage, but that is often somewhat offset by the patronage that is returned to the borrower at the end of the year.  Each lender offers some great options to help you make the purchase of the property you’ve been dreaming of. So please contact these lenders to find out what program works best for you, and please contact Southeastern Land Group when you are ready to make your rural land purchase in Alabama.

Written by: Jonathan Goode is an Accredited Land Consultant (ALC) and licensed land broker in Alabama and Mississippi. He co-hosts the weekly radio program, The Land Show, that covers many of these topics for people interested in buying or selling land in Alabama.