One of the main advantages of working with Heritage Land Bank for all of your financing and refinancing needs is the lengthy period we are able to give on fixed rate loans. Typically, a bank is only able to give fixed rate loans on land for a short time, generally five to 10 years. Not so with Heritage Land Bank—our loans are able to finance a client's country house or hobby ranch for two or three decades.
If you haven't heard of fixed rate land loans lasting for such a long period, you certainly aren't alone. Most people think they can only get this kind of deal by selling the loan to a secondary market. So how does Heritage manage to make this happen? The answer, really, is simple—because we are a member of the United States Farm Credit System. As we discussed in a previous blog post, this system exists to lend money to those in the agribusiness who need financial assistance.
As a member of the U.S. Farm Credit System, Heritage Land Bank is able to borrow money directly from the national market. What this means is that when a customer is interested in buying a ranch in Texas, but requires a 20 or 30-year fixed rate loan, we are able to go right to the money market and take out the amount with the maturity that the client needs. The interest rate between us and the client is fixed, as is the interest rate between us and the national money market. It really is as simple as that.
So if you are in need of financing for your farm or ranch, be sure to contact one of our representatives today!