Frequently Asked Questions
Below are some frequently asked questions and answers.
Have a question that is not answered below? Contact your local Heritage Land Bank branch for more information.
FAQs
Who is eligible to borrow from Heritage Land Bank?
Eligible applicants include land buyers, rural homeowners, agribusinesses, farmers, ranchers, and any person or legal entity who is involved or plans to become involved in the ownership of rural property. Loan approval and terms are subject to applicants’ creditworthiness.
Do I have to be a farmer or rancher to get a loan with Heritage Land Bank?
No, you do not have to be a farmer or rancher to get a loan from Heritage Land Bank.
Does Heritage Land Bank make home loans?
Yes, we make loans for the purchase, construction and improvement of homes located in rural areas. We also finance rural homesites upon which homes will be constructed in the future.
What collateral is required?
All real estate loans must be secured by a first lien mortgage on real estate, generally the farm, ranch, agribusiness facility or home that is financed by the loan. Loans for operating capital, livestock and equipment are generally secured by crops, livestock, equipment, receivables, or other assets of the operation being financed.
How much can I borrow?
The amount an applicant can borrow is based upon many factors that can only be analyzed by one of the members of our professional lending staff. The collateral, financial strength, financial history, and repayment ability of the applicant will determine the total amount that can be borrowed. Please contact one of our branch offices and discuss the options with one of our professionals today.
What are your current interest rates?
Interest rates change daily and many factors determine the interest rate on a loan, including the type of loan, loan term, borrower’s credit history, and more. In addition to receiving competitive interest rates, customers also share in Heritage Land Bank’s earnings through the cooperative dividend program which effectively reduces their borrowing costs. Please contact a loan officer near you for details on loan pricing.
How do I begin the loan process?
You can find a list of items needed when you complete your loan application (link). In most cases, much of the application process can be completed digitally. However, some documents will need to be physically and not digitally signed.
You can also contact a loan officer to discuss your financial plans and get step-by-step guidance through the loan process.
Does Heritage Land Bank make payday or personal loans?
No, we do not make payday or personal loans.
Does Heritage Land Bank accept deposits?
No. Heritage Land Bank is not a depository but we offer an interest-bearing funds-held account for our borrowers on certain types of loans. Interest earned is applied to interest due on the next loan installment. Money in the funds-held account can be used to pay loan installments and may be withdrawn for other limited purposes.
What does it mean to be cooperatively owned?
Everyone obtaining a loan through Heritage Land Bank becomes an owner of the association through the purchase of stock. The amount of stock depends upon the type of loan and the loan amount. Funds for the stock can be included in most loans.
Ownership of this stock gives you the right to run for the board and to participate in the election of the board of directors.
Typically, the financial performance of the association allows borrowers to be paid a cooperative dividend which can reduce the cost of borrowing for our customers.
Where does Heritage Land Bank obtain funds to make loans?
Heritage Land Bank is a part of the nationwide Farm Credit System and is affiliated with the Farm Credit Bank of Texas, located in Austin, Texas. The Farm Credit Bank of Texas and Farm Credit Administration provide funding oversight for the association by selling bonds to investors in the nation's money markets.