# Advice for Construction loan



## ohiotw (Jul 29, 2014)

Does anyone have advice on lending institutions that are more likely to give construction loans on properties with barns and other out buildings? 

The first local bank I went to would not lend for construction on the properties I found with pole barns even though the sites already had septic and well and electricity in place....

I'm going to continue searching locally for other options but was hoping someone here had experience with this.


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## po boy (Jul 12, 2010)

What state are you building in?

Try Farm Credit or Similar Lender in your area.

Hamilton State Bank does construction loans... See if they lend in your area.


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## ohiotw (Jul 29, 2014)

We are building in Ohio. I'm going to check to see if any qualify for certain agricultural loans as well.


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## po boy (Jul 12, 2010)

Farm Credit did our construction loan in Tn. We already owned the property.
They are in Ohio and are a lot easier to work with than a traditional lender. Call the nearest office to where you want to build/buy and run the scenario by them.


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## ohiotw (Jul 29, 2014)

po boy said:


> Farm Credit did our construction loan in Tn. We already owned the property.
> They are in Ohio and are a lot easier to work with than a traditional lender. Call the nearest office to where you want to build/buy and run the scenario by them.


I just checked out the Farm Credit website. It looks very promising as far as approval. Not sure if the rates are competitive if they are willing to take on "more risky" loans. I will be making a phone call tomorrow to set up contact with them. Thanks po boy!


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## po boy (Jul 12, 2010)

ohiotw said:


> I just checked out the Farm Credit website. It looks very promising as far as approval. Not sure if the rates are competitive if they are willing to take on "more risky" loans. I will be making a phone call tomorrow to set up contact with them. Thanks po boy!


 Rates are a little high, but they lend to 85% without MI. Use them to get into the property and refi. out of it if you get a better deal.


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## ohiotw (Jul 29, 2014)

Thanks for the Info again po boy. We really wish to build even though we could obviously buy more house for our money if we consider one already built. We really desire to locate within a specific school district so hopefully we can find a lender to pull through.


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## sethwilliams (Aug 1, 2014)

We got our farm loan through farm credit. They were super easy to deal with and required 15% down. We don't have a house yet but when we build, we will be required to put 15% down. Not a bad deal at all. I would recommend them.


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