Skip to main content

If you dream of buying land in Texas, this article includes information about three exciting loan programs that can assist you to buy land in the state. Buying land can be daunting. Not only do you need money to buy the land, and pay transaction fees, depending on what you plan to do with it, you might also need money to build a home or set up a farm or homestead.

1. USDA Microloan Program

The first program you could look into is the US Department of Agriculture’s Microloan Program. This program is targeted more specifically at people who want to establish some sort of farming activity on the land they purchase. This includes those of you thinking about homesteading! There are two kinds of microloans. Direct Farm Ownership Microloans can be used for a down payment on a farm, and for building, repairing, or improving farm buildings (including the farm dwelling). Direct Farm Operating Microloans help you get started with farming or homesteading operations. You can use this type of microloan to purchase tools, equipment, livestock, seed, fertilizers, and other materials, but also to install irrigation or get certified as an organic farmer. These are just some examples of how you can use the USDA Microloans. Check out the website for a much longer list! Microloans have a $50,000 limit, and the maximum repayment period is 25 years, although repayment periods will vary based on what you use the loan for.

Lone Star Land Sales - Barn

2. USDA Single Family Housing Loan Program

Another USDA loan program is the Single Family Housing Guaranteed Loan Program, also called the Section 502 Guaranteed Loan Program. This program assists by providing loan guarantees to approved lenders, thereby reducing the risk for those lenders. With this guarantee, lenders can provide 100% financing. This means you could purchase a home with no down payment required! To be eligible, you must meet an income-eligibility requirement and commit to using the house as your primary residence. You can use a loan guaranteed by this program to purchase, build, renovate, or relocate a dwelling in eligible rural areas. Interest rates are determined by the lender, so you should always get offers from different banks and mortgage lenders to ensure you get the best deal possible. One requirement of the program is that the loan must be a 30-year fixed-rate mortgage. The website provides lists of participating lenders by state, and you can input your address on the website to see if the land you are looking to buy falls in an eligible area.

Lone Star Land Sales - House-on-Farm

3. Texas Veteran Land Board Loan Program

The third loan program we cover in this blog article is the Texas Veterans Land Board Land Loan Program for veterans. With this program, you can borrow up to $150,000 to purchase your dream piece of land at a low interest rate with a down payment of as little as 5%, subject to credit approval. There are eligibility requirements for the borrower and the land. The borrower must be a Texas resident and in active service with the military or Texas National Guard or be a veteran with sufficient qualifying service. The land must be at least one acre or more and located in the state of Texas. Other requirements include having access to a public road and not being zoned exclusively for commercial use.

Lone Star Land Sales - Veteran-Flag

4. Our Owner Financed Land

While not a specific program, we do offer owner financing on many of our lots around the state! Generally, our finance terms are 10% of the purchase price for a downpayment and the term length is either 15 years or 30 years. There is also a 12% APR but you are able to refinance when you’re able to get a lower interest rate! We have helped MANY people just like you achieve their dream of owning land with this!

Find your ideal land here and we’ll put you in touch with a local land expert who can discuss the various loan options with you.