Saturday, August 17, 2013

Financing a Ranch in Oregon

Investing in a ranch requires a lot of money. When you're considering a modestly sized house, utilities, a barn, and potentially thousands of acres of pristine wilderness, the price alone could run anywhere between six and eight digits. That amount may not even factor in the property tax and closing costs, plus the upkeep for employees. Financing may be the way to go when you are looking to buy a farm but do not have enough cash on hand.

As with every other financial endeavor, a lender will first study your credit history to determine your ability to pay them back the loan. It is important to look for reputable lenders that specialize in transactions for the specific type of ranch land you want to buy. For example, lenders that exclusively do commercial farmland transactions may not entertain you if you want to buy private farm property.

Some private lenders, especially credit unions in the general area where your property is located, may have a full range of ranch financing services. However, they might have specific credit scores you must reach. At the same time, take note of the maximum number of acres they may be willing to help you finance. Taking out a loan for ranch property carries some advantages. All it takes is willpower and financial management to make the payments on time.


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