Rural & Agriculture Financing Center
Whether financing acreage, refinancing a mortgage or land contract or making related improvements, Compeer Financial provides the most flexible financing for your purchase, including long-term fixed rate financing options.
I want to finance a rural home or acreage. What's my first step?
First, know what to look for when purchasing a rural property. Our Financing Your Country Home Guide provides valuable information on what you’ll want to consider when looking for your perfect rural property, like land surveys, utilities and zoning laws.
What are the home mortgage products and terms you have to offer?
We offer a variety of options to fit your needs and lifestyle:
- Conforming Loans - Single-family residence, duplex or townhomes with limited outbuildings.
- Non-conforming Loans - 40+ tillable acres or zoned agricultural with substantial outbuildings. Financing available for unique properties such as log homes, manufactured homes and earth homes.
- Construction/Renovation Loans - Option to pay interest only on loan funds or lock in a long-term, fixed-rate right away. Finance construction of unique properties such as log homes, manufactured homes and earth homes.
- Home Site/Lot Loans - Land purchases for future home construction or refinance land already owned. Low down payments and fixed rate amortization with ARM/balloon options available.
- Recreational Land Loans - Fixed-rate loans to purchase or refinance recreational and hunting land.
- Home Equity Loans - Fixed-rate options.
What if I'm building a new rural home?
Compeer Financial makes financing new home construction in rural areas simple. Our flexible program gives you up to 10 years to either build on the location or begin paying down the loan. You tell us when you are ready to build a home; we’ll get you set up and ready to go.
- Home Site/Lot Loans - Land purchases for future home construction or refinance land already owned. Low down payments and 10-year fixed rate or 30-year amortization with ARM/balloon options available.
- Recreational Land Loans - Fixed rate loans to purchase or refinance recreational and hunting land.
The one-close loan process sets you up with a single loan for the whole project, giving you advantages like competitive rates, paying interest-only on disbursed funds and confidence that our team will help you every step of the way.
What are the main sources of rural financing?
Commercial banks, mortgage companies, insurance companies, private lenders (owner financing) and Farm Credit lending co-ops are all sources of financing for rural real estate. Some are more active in financing certain types of real estate, such as working farms, than other types. Farm Credit institutions finance the entire spectrum of rural real estate, from recreational property and part-time agricultural operations to country homes.
How long does the home loan process take?
Recognizing a need to allow consumers adequate time to consider the implications of taking out a mortgage loan, government regulations were enacted to allow time to make sure you are doing what is best for your finances and future.
- Mortgage Disclosure Improvement Act - Allows time to review disclosures provided by the lender, not less than 7 days, before closing takes place.
- Appraiser Independence Requirements - Allows time to review the appraisal report, which must be delivered to the client no less than 3 days prior to closing.
- Right of Rescission - 3-day period from date of closing where you may cancel the transaction. Applies to refinance and second mortgage closings and not required on purchases.
Why can't my home loan be placed on the secondary market?
Secondary market lending follows a very strict set of guidelines for property types and borrower requirements. Many times a borrower has outstanding credit history, but the financed property has agricultural or business influence, unique features that other homes in the area may not have or be for bare land, requiring it to be financed through a lender’s portfolio program. Even with outstanding credit, there may be challenges with a borrower’s profile that may not allow secondary market lending to be an option.
A Journey to Owning a Home in the Country
When your dream is to live in the country, locating the right property can be full of ups and downs. For Jim and Stephanie Kvalheim, finding financing was even more difficult. Learn more about why typical lenders don’t offer long-term fixed mortgages to rural home buyers and how Compeer Financial was able to help the Kvalheim’s dream become a reality.
Creative Solutions to a Sticky Financing Situation
Learn more about why typical lenders don’t offer long-term fixed mortgages to rural home buyers and how Compeer Financial can help turn your dreams of living in the country a reality.
Farmland Loan Rate Options
Fixed Rate: long-term maturities provide consistent payments throughout the life of the loan, helping you manage your interest risk and cash flow.
Variable Rate: monthly variable rates and adjustable rates at yearly intervals. Conversion feature lets you update your interest rate program without the cost or time it takes to do a traditional refinancing.
Revolving Line of Credit: borrow funds for land purchases or other business needs with five- or ten-year draw periods, followed by an amortized loan. Pay interest-only on money disbursed during the revolving term, not on entire amount. Leave loan balance on a variable rate of interest during the draw period then lock in a fixed rate on all or part of the principal.
Who is Compeer Financial?
Compeer Financial is a member-owned, Farm Credit cooperative serving and supporting agriculture and rural communities. We provide loans, leases, risk management and other financial services throughout 144 counties in Illinois, Minnesota and Wisconsin. Based in the upper Midwest, Compeer Financial exists to champion the hopes and dreams of rural America. With 1,200 dedicated team members serving more than 43,000 clients, we offer specialized expertise and personalized service regardless of the size of the farm, the type of crop grown or the livestock raised. Our services are provided with convenience in mind, through visits to fields, barns and homes, or by maximizing technology to make the most of every hour in every day.
Compeer Financial regularly collaborates with others who are also dedicated to agriculture and rural America. Our in-house specialists participate in conversations that extend beyond our service area, providing formal and informal insight on topics pertinent to all industries, including dairy, swine, grain and renewable energy. With $18 billion in loan and lease assets, Compeer Financial is one of the largest cooperatives in the Farm Credit System. This nationwide network of lending institutions supports agriculture and rural communities with reliable, consistent credit and financial services.
Mission: Enriching agriculture and rural America.
Vision: Trusted financial services partner advancing agriculture and rural America.