Construction Loans for Building a Home
Flexible Financing for Custom Home Construction on Rural Land
Building a home comes with unique financing needs, especially when your plans involve rural land, custom designs, or a farming operation. AgSouth offers construction loans designed to support a wide range of building projects with flexibility around your land, your builder, and your operation.
This type of construction financing is structured differently than a one-time construction to permanent loan. Our team works with you to structure a loan that fits your project from the ground up.
Who Uses Construction Loans and What Are They Building?
Construction loans are used by borrowers who need flexibility in how their project is financed and built.
Common use cases include:
- Building a home as part of a farm operation. Farmers use construction loans to build a primary residence on working land, align construction timing with operational cash flow, or structure financing alongside other farm-related assets.
- Designing a fully custom home on larger acreage. Build a home tailored to your land, layout preferences, and long-term plans.
- Building in rural or unique property locations. Support projects in areas where property type or land use may require a more customized lending approach.
- Building on land you already own. Start construction on family land, rural acreage, or property you’ve purchased previously.
- Buying land and building at the same time. Finance both the land purchase and construction as part of your overall project.
Construction Loan Options for More Complex or Unique Builds
AgSouth Farm Credit offers construction loans designed for projects that require flexibility beyond standard mortgage structures for full and part-time farmers. These loans are often used when a building involves unique property characteristics, custom designs, or timelines that don’t align with traditional programs.
You’ll work directly with a lender who understands rural construction, land use, and how to structure financing around the realities of your build.
Construction Loan Features and Financing Details
Flexible draw schedules based on your build timeline:
- Quick turnaround on draw requests to keep construction moving
- Payments can be made directly to the builder with homeowner approval
- Up to 85% financing available
- Option to refinance to a permanent mortgage after construction is complete
Why People Choose AgSouth for Construction Loans
- Local construction lending expertise
- Experience with rural land and custom home builds
- Flexible financing structures based on your project and your farming operation
- Direct communication throughout the construction process
Construction Loan FAQs
What if my project doesn’t fit a standard loan program?
AgSouth offers construction financing designed for projects that require more flexibility, including custom builds, rural properties, and non-traditional scenarios.
Can I finance land and construction together?
Yes. Many borrowers finance both land and construction as part of their overall project, depending on eligibility and structure.
How are construction loans different than construction to permanent financing?
A construction loan covers the building phase of a home, with permanent financing arranged separately once construction is complete. A construction to permanent loan combines both phases into a single loan.