AgTrust Construction Loans: Build Your Rural Dream with Confidence
Embarking on a construction project is an exciting, albeit sometimes daunting task. Before an excavator or backhoe can dig the first hole in the ground, you need the right construction loan to bring the project to fruition. Whether you’re building a country home, farmhouse, barn, or other infrastructure to support your farm or ranching operations, securing reliable financing is key.
AgTrust Farm Credit offers construction loans designed specifically for rural borrowers in Texas and New Mexico. Below, we break down everything you need to know about construction loans and how AgTrust’s offering is beneficial to your project.
What You Need to Know About Construction Loans
Construction loans can be used for a variety of purposes on your rural land. You can finance the new build of a house, barn, shed, fencing, grain silo, roads, water system, stock tank, and more. This type of loan is typically for a shorter time period compared to traditional loans since its purpose is to fund the build portion of the project. The funds can be used for architectural plans, labor, and construction costs. Once construction is complete, then another loan is typically required to pay off the remainder of the project. AgTrust offers short- and intermediate-term construction loans to cover all aspects of your farm or ranch operation improvements.
Why to Choose AgTrust for Your Construction Loan
AgTrust structures construction loans differently than most lenders to benefit our customers. When you take out a construction loan with us, you lock in your rate for the fixed life of the loan. That means if you start construction on your project and interest rates go up before it’s complete, you’ll still enjoy the lower rate from the loan’s inception.
But that’s not the only thing that makes our financing unique. AgTrust offers construction loan terms that most lenders don’t. For starters, our rates are competitive and crafted for rural borrowers and are often more favorable than general commercial lenders.
With our construction loan, you have 12 months to complete your build, and during that time, you only pay interest on the money you use. After a year, the construction loan converts to a normal loan where you make monthly payments on the principal plus interest. This automatic conversion feature saves you money because you don’t have to pay closing costs twice. Most lenders require you to convert to permanent financing at this stage, but with AgTrust the transition is seamless.
Another great benefit of partnering with AgTrust is our Rate Conversion Program for a small fee. Over a 30-year mortgage interest rates are prone to fluctuate. We make it hassle-free to lower your rate. Just pick up the phone, call your local lender, and he or she will send over a few things to sign, so your loan can be serviced at a lower rate.
We pride ourselves on making the lending process simple for your construction project to take the complexity out of financing. And if you need additional funding, we’re your one-stop-shop who offers a full range of other loan products, including financing for new equipment purchases, operating capital, and real estate. This means we can be your long-term financial partner as your operation evolves, no need to mix and match mortgage types and lenders.
Who Qualifies for Construction Loans From AgTrust?
You can inquire about AgTrust lending if you’re a rural homeowner, farmer, rancher, or agribusiness operator in Texas or New Mexico. Unlike big retail banks, AgTrust understands the nuances of rural lending — land values, construction challenges, and agriculture cycles, which is how we’re able to provide personalized support and alleviate your stresses.
How to Get Started
AgTrust offers a clear, step-by-step loan application process to guide you. We make it easy to define your purpose, submit personal info, detail the dwelling, estimate value, and choose your loan amount. Not sure what a construction loan will cost your monthly budget? Check out our handy online Loan Calculator so you can estimate payments, schedules, and more.
Build Smart with AgTrust
As part of the Farm Credit System, AgTrust is committed to bringing stability, mission-focused lending, and local decision-making, all geared toward rural prosperity. If you’re looking to develop a rural property — be it a country home, ranch facility, or agricultural building — AgTrust Farm Credit provides a tailored, step-by-step loan solution backed by financial expertise and rural insight. Contact us today to get your project off the ground.