Sioux City’s Farm Credit Services of America (FCS) recently recapped the varied options available for purchasing a rural residence — specifically offering guidance geared for buying land first and building later via a home site loan.

Procuring property prior to creating construction offers many advantages according to FCS. Signing off on a parcel ensures that buyers won’t be surprised with increases in land prices. It also allows the consumer to compartmentalize the many tasks associated with transactions, breaking down the burden into smaller steps over a period of time rather than squeezing in multiple major decisions simultaneously.                        

FCS additionally reminded constituents to be fully aware that property loans secured ahead of time come with different terms and procedures. First, parcel size may be subject to scrutiny, since conventional plots are usually significantly smaller in area. Large rural sites may have “nonconforming” qualities.

“Talk to lenders about their ability to finance any sized lot and their familiarity with rural features, such as outbuildings, crops or septic systems that often other lenders aren’t,” FCS officials advised.

Potential purchasers also need to stay open-minded in case building plans take longer than anticipated once land is secured. Farm credit experts pointed to expectations of crop income as a prime example.

With proper preparation and advance knowledge, financing a country home is entirely feasible well in advance of groundbreaking.