Texas Farm Credit — Your Solution to Financing for Agricultural & Recreational Real Estate

Guest article by David Derry of Texas Farm Credit,
with contributions from Jeff Millikin.

I have been in the mortgage lending business for 15 years, working solely with referral business from realtors and past clients.  We have 23 offices around Texas and attend closings as often as possible.  We, Texas Farm Credit, believe that the lending business should be relationship based, so we don’t do much advertising.

At Texas Farm Credit we pride ourselves on our personal attention and like to do business face to face when possible.  We understand that not everyone can make a trip to our office and do not mind meeting the borrower at their convenience and location. 

As a lending cooperative, Texas Farm Credit is owned by our customers who elect our board of directors and receive a share of our earnings through our patronage program.  When you do business with us, you share in our financial success.  This cooperative structure is key to our long-standing stability.

Mortgage Loan Officer Program

 Here is a summary of what we can do from the Mortgage Division side of Texas Farm Credit.  We offer a very wide range of home loans, from townhomes in the city limits to very large ranches. In-towntown loan options include: conventional, jumbo, FHA, and VA.  We offer all of the Fannie Mae and Freddie Mac programs, including down payments down to 3% (0% down on VA loans).  We have fast underwriting times and keep all parties updated during the process.


Our really unique niche is rural properties.  We have the ability to offer Fannie Mae conventional loans with no limit on acreage and we allow agricultural exemptions.  We can offer as little as 5% down on this type of property.  An example of this scenario would be a home on 25 acres, with a current agricultural exemption.  A 30 year fixed rate loan with as little as 5% down would be possible.  We do have the same conventional loan limit of $424,100.00, but do have a second lien lender that could lend up to $100,000 more with 5% down.  That would allow a purchase price of $550,000.00 to have a down payment as little as 5% down on a property with up to 25 acres (the second lien lender has a max of 25 acres).  We choose our own appraisers on this type of loan.  


We also have our portfolio loan program for truly rural properties.  This program also has no acreage limitations, no ag exemption requirements, or maximum loan size.  We require 20% down and a minimum of 10 acres.  An ideal scenario for this loan program would be a large house on large acreage with a purchase price that would put it into the jumbo loan range, over $424,100.00.  If the land appraises for more than the house, we would handle it on our rural lending side.   We do offer construction loans with this program for homes on larger acreages. 


Rural Loan Officer program

Texas Farm Credit is an agricultural lending cooperative specializing in rural lending.  In addition to our mortgage and rural residential programs, we offer financing options for acreage property 10 acres and larger in size.  We require 20% down on most properties and offer amortizations up to 20 years (occasionally 30 years).  Interest rates are competitive, and along with loan terms, can be structured to meet the borrower’s needs.  For instance, a full term fixed rate may make sense for some borrowers, but not for others.  We have the flexibility to structure the loan to fit the individual borrower. 

In addition to financing land, we also offer other products that you may rarely have a need for but may run into from time to time.  We offer operating lines of credit for day-to-day farm and ranch operating expenses, term loans for livestock purchases, equipment loans and leases, and crop, pasture and life insurance.


We at Texas Farm Credit are experienced, agricultural lenders. Farming and ranching have been a part of my life since the beginning growing up on a cow-calf operation where I currently reside.  I have a deep appreciation for the rural lifestyle and understand the complexities involved with financing a land transaction.  We can work with you to guide the borrower through the borrowing process with friendly and professional service that does not end at the closing table, but extends through the life of the loan.


David W. Derry | VP Branch Manager | Texas Farm Credit

3272 Highway 16 S., Bandera, TX  78003 | O: (830) 796-9201 | C: (830) 328-6448 | F: (830) 796-9204



Jeff Millikin

Mortgage Loan Officer

NMLS # 202662                   

Texas Farm Credit                                                   

c: 979-337-4537                               

f: 979-830-0875                                

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