Country Home Mortgages

Conventional Rural Home Loans
(When the property's primary use is residential)

Part-Time Farm/Residential Loans
(For the homeowner with excess acreage)

Construction Loans
(To finance the building of a single-family, owner-occupied, detached residence)

Rural Property Loans
(Property typically is 50 acres or larger and used mainly as an investment)

KEY FACTS – A QUICK REFERENCE

Following are important features and facts about Texas Country Mortgages loan programs for residential properties, land that includes both a residence and a part-time farming operation, rural property acquired primarily for investment purposes and construction loans.

Conventional Rural Home Loans
(When the property's primary use is residential)

• Competitively priced, long-term, fixed rate loans available
• No pre-payment penalty

• Loans up to 95% of property value
• No maximum acreage limitation
• Manufactured housing acceptable (double-wide and larger)
• Income may be generated from small farming operation
  

     Qualification Criteria Include:

• Single-family, owner-occupied, detached residence located on the property
• As a guideline, contributory value of the dwelling should be 50% or more of the total appraised value.
• Property must be located in a rural area or in a town or municipality with a population of 2,500 or less.

Part-time Farm/Residential Loans
(For the homeowner conducting or planning a small farming operation)

• Competitively priced, long-term, fixed rate loans available
• No pre-payment penalty
• No escrow for property taxes and hazard insurance required
• Loans up to 85% of property value
• No maximum acreage limitation
• Manufactured housing acceptable (double-wide and larger)

     Qualification criteria include:

• Single-family, owner-occupied, detached residence located on property
• Value of the dwelling should represent 30% or more of the total appraised value.
• Property must be used for both residential and agricultural purposes.

Construction Loans
(To finance the building of a single-family, owner-occupied, detached residence)

• Competitively priced, long-term, fixed rate loans available
• No pre-payment penalty
• No escrow for property taxes and hazard insurance required
• Loans up to 90% of property value
• 180-day construction period with flexible draw schedule
• Interest charged only on amount disbursed
• Property may be accessed by a private road.

     Qualification criteria include:

• Property must be located in a rural area or in a town or municipality with a population of 2,500 or less.
• Loan must be secured by first lien.
• Easements may be permissible if they don’t make the property unmarketable.

Rural Property Loans
(Property typically is 50 acres or larger and used mainly as an investment)

• Competitively priced fixed/variable rate loans available
• Flexible terms and payment schedules
• No maximum acreage limitation
• Property also can be used for residential purposes

     Qualification criteria include:

• Property must be able to produce agricultural income on a sustained basis (timber, crops, livestock, or cash rent), but owner not required to participate in operation.
• Property must be located in rural area
• Property must be secured by a first lien

 

 

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