Cedar Top's land and ranch loan prices at a rate starting at 12%, an origination fee of 2% to 4% of the loan amount, and a $995 document fee. Those three numbers set what your loan costs. The rest of this page walks through how they combine on a real parcel, where inside that range your deal lands, and how the structure differs from a bank, Farm Credit, or Veterans Land Board loan.
This is a short-term investor loan on Texas land, not a 30-year land mortgage. If you are holding a bank or Farm Credit quote, read the comparison section below before you compare the rate alone.
The Published Numbers
| Term | Cedar Top land and ranch loan |
|---|---|
| Interest rate | Starting at 12% |
| Origination fee | 2% to 4% of the loan amount |
| Document fee | $995 |
| Leverage | Up to 65% of market value |
| Loan amount | $50,000 to $10,000,000 |
| Initial term | 6 to 24 months |
| Payments | Interest only |
| Prepayment penalty | None |
| Title | Lender's title policy required |
| Funding | Typically a single advance at closing |
| Closing | As little as 24 hours pending title work |
| Property | Texas, non-owner-occupied investment land only |
| Credit | No minimum credit score, though credit may be reviewed |
These same numbers appear on the land and ranch loan page and in the rates and terms table, which is where we keep them current.
A Worked Carry Example
Take a 40-acre tract under contract at $400,000, with the purchase price supported as market value. Here is what the loan would cost you on paper. Treat it as an estimate, not a quote.
Loan amount. 65% of $400,000 is $260,000. That is the ceiling; the approved amount can come in lower.
Monthly interest. $260,000 x 12% = $31,200 per year. Divided by 12, that is $2,600 per month, interest only. Principal does not amortize during the term, so the payment does not change.
Origination. At 3 points, $260,000 x 3% = $7,800. At 2 points it is $5,200; at 4 points it is $10,400.
Document fee. $995.
Cash at closing. The $400,000 price less the $260,000 loan is $140,000 in equity from you. Add $7,800 in points and the $995 document fee and you are at $148,795, before title premiums, recording, prorated taxes, and a survey if your tract needs one.
Total lender cost by holding period, at 3 points, interest plus points plus the document fee:
| Hold | Interest | Points + doc fee | Total |
|---|---|---|---|
| 6 months | 6 x $2,600 = $15,600 | $8,795 | $24,395 |
| 12 months | 12 x $2,600 = $31,200 | $8,795 | $39,995 |
| 24 months | 24 x $2,600 = $62,400 | $8,795 | $71,195 |
There is no prepayment penalty, so if you sell or refinance in month eight, the interest stops at month eight. Property taxes, insurance if there are improvements, and the cost of whatever you plan to do with the land (a survey, a road, a well, a subdivision plat) sit on top of these figures. The Texas land loan calculator runs the same math on your own price, leverage, points, and holding period.
What Moves the Price Inside the Range
The rate starts at 12% and origination runs 2% to 4%. Where your loan lands inside that range depends mostly on five things.
Leverage
A request at the 65% ceiling prices differently from one at 50%. Land is slower to sell than an improved property if the exit slips, so the less equity you leave in the deal, the more of that risk the loan carries.
Legal Access
Recorded, insurable access to a public road is the most common reason a land deal that otherwise works still does not fund. A parcel with deeded frontage is a cleaner loan than one that depends on a neighbor's goodwill or an unrecorded two-track. Access questions do more than move price; they can stop the loan.
Survey and Title Condition
A current survey and a clean title commitment shorten review and lower uncertainty. An old survey, a boundary dispute, an unreleased lien in Schedule C, or a pipeline easement across the only building site all add work and risk, and the pricing reflects that.
The Exit
The loan is repaid by a sale, a build, or a refinance. A contract-backed resale or a bank take-out letter is stronger than a plan to figure it out later. A realistic exit inside the term is what lets your loan price at the low end of the range.
Holding Period
Rate and points are separate costs. Points are paid once; interest accrues monthly. A 6-month hold at 4 points can cost less in total than a 24-month hold at 2 points. Run the table above with your own numbers, and ask us for the structure that fits how long you will actually hold the land, not the one with the smallest single number.
How Bank, Farm Credit, and VLB Land Loans Differ
These lenders serve a different borrower, and the structure shows it. This is a structural comparison only. None of their rates are quoted here, and their pricing changes; get it from them directly.
| Cedar Top land and ranch | Banks and Farm Credit | Texas Veterans Land Board | |
|---|---|---|---|
| Built for | Investors buying Texas land to resell, subdivide, build on, or refinance | Agricultural operators and long-term owners with documented income | Eligible Texas veterans buying land they will hold |
| Down payment | 35% of market value or more (up to 65% leverage) | Typically 20% to 35% | Minimum 5% down on eligible tracts |
| Term | 6 to 24 months, interest only | Amortizing, commonly 10 to 30 years | 30-year fixed |
| Underwriting | The parcel, access, title, and exit; no minimum credit score, though credit may be reviewed | Tax returns, global cash flow, credit-score minimums, appraisal | Veteran eligibility, a one-acre minimum, program loan caps |
| Time to close | As little as 24 hours pending title work | Typically several weeks, appraisal dependent | Program application and appraisal timeline |
| Prepayment | No penalty | Varies by lender | No penalty |
Source for the VLB column: the Texas General Land Office land loans page. The bank and Farm Credit column describes typical structures, not any one lender's terms.
If you are an operator running cattle on land you will hold for 20 years, the bank or Farm Credit structure is the right tool for you, and the lower rate is worth the paperwork and the wait. If you are a veteran buying acreage to keep, the VLB program is built for you. A short-term private loan is the tool for a different job: an off-market seller who wants to close in ten days, a tract you plan to split and sell within a year, or a bridge until your build or refinance is ready.
When 12% Is the Cheaper Number
Compare total cost over the hold, not the rate. On the $400,000 example, six months of interest at 12% plus 3 points and the document fee is $24,395. If closing in a week instead of waiting 45 to 60 days on a bank contingency buys you a $40,000 price reduction from a motivated seller, the private loan cost less than the discount it earned you. That is the trade, and it only works when your hold is short and your exit is real.
The reverse is also true. If you plan to hold the land for years and it produces income, a 12% interest-only loan is the wrong instrument for you. The right structure for that borrower is a bank or Farm Credit refinance, and a private loan should only be the bridge to it.
Where Cedar Top Fits
Cedar Top lends on Texas farm land, ranch land, undeveloped land, and lots, non-owner-occupied only, from $50,000 to $10,000,000. Co-founder Kody Fain spent six years in commercial and agricultural banking before Cedar Top, so a rural collateral conversation is familiar ground here. To price your parcel, we need the executed contract, the survey if you have one, your title company contact, and your exit. For what the review looks at, read raw land loan requirements in Texas; for the acquisition side, how to buy land in Texas.