Financing Options for Purchasing A Grove or Land
- All Cash. No one will say no to hard green cash. Cash is always welcome in any deal.
- Owner Financing. Many sellers know how difficult it is to get an agriculture/land loan so some sellers will offer owner financing. Although terms are negotiable, typically this requires at least 30% to 50% cash down payment, a 5-7 loan term at about 5 to 7% interest. Owner financing is always a negotiating ITEM so offer what you feel is fair.
- Agriculture/Land Loan: There are few banks that will lend on an Agriculture loan. Some require up to a 50% down payment. Here are a few that might be able to finance land:
- American Ag Credit – www.Agloan.com - American AgCredit offers a broad range of agricultural loan, leasing and insurance services. The Temecula branch can be reached at 951-296-0175.
- Rabobank – They will finance the purchase of raw land and finance a percentage of the cost to do the improvements. However, to do this they like to see that the owner has some experience or that they have hired a qualified farm manager such as Sierra Pacific Farms. Generally they will finance 65% of the appraised value of the real estate and fund up to 70% of the development costs. For more information please contact them at 855-722-7766.
- Banner Bank - For more than 125 years Banner Bank has been supporting farmers, ranchers, dairymen, viticulturists, orchardists and other agribusinesses with tailored financing solutions. Please visit their website at https://www.bannerbank.com/business-solutions/business-commercial-financing/agloans You can also reach an associate at 760-678-8075.
- American Ag Finance - The minimum loan amount is $200,000 with 70% loan to value offered in all states. There is no maximum loan amount. All borrowers need a minimum credit score of 680 or better to qualify. Adjustable and fixed rates are available. Most loans have payments that are due monthly or semi-annually. Your enterprise can even be as small as 20 acres of land. https://americanagfinance.com/agricultural-loans/ Please call 913-549-3776 for more information.
- Other options: Construction loans, Lot Loans
- US Bank Vacant Lot Loans – Lot loans are for building future primary residence or second home only. Please contact Tamara Partridge at 714-372-8168 for more information.