Land & Ranch # Texas Land Loan Rates: What a Private Land Loan Costs What a Cedar Top Texas land loan costs: rates from 12%, 2% to 4% origination, a $995 doc fee, a worked carry example, and how bank and Farm Credit loans differ. [Apply Now](https://cedartoplending.com/apply/) [Get a Quote](https://cedartoplending.com/contact/) By Kody Fain ยท Published September 2, 2026 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 the loan costs. The rest of this page is how they combine on a real parcel, where inside that range a specific deal lands, and how the structure differs from a bank, Farm Credit, or Veterans Land Board loan. All terms are subject to underwriting and approval. 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 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 Every figure is subject to underwriting, collateral review, title review, documentation, and approval. The same numbers appear on the [land and ranch loan page](https://cedartoplending.com/hard-money-loans/land-and-ranch/) and in the [rates and terms](https://cedartoplending.com/hard-money-loans/rates-and-terms/) table, which is where they are maintained. ## 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 costs 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 the file 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 a sale or refinance in month eight stops the interest 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](https://cedartoplending.com/resources/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 a specific file lands 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 file 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 a file 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 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](https://www.glo.texas.gov/land-loans). 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, 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 a 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 bought a $40,000 price reduction from a motivated seller, the private loan cost less than the discount it earned. That is the trade, and it only works when the hold is short and the 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. 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 a specific parcel, we need the executed contract, the survey if you have one, the title company contact, and your exit. For what the review looks at, read [raw land loan requirements in Texas](https://cedartoplending.com/blog/raw-land-loan-requirements-texas/); for the acquisition side, [how to buy land in Texas](https://cedartoplending.com/blog/how-to-buy-land-in-texas/). Terms are subject to underwriting and approval. [Get a Quote](https://cedartoplending.com/contact/) ## Frequently asked questions ### What are Texas land loan rates at Cedar Top? Rates start at 12%, with an origination fee of 2% to 4% of the loan amount and a $995 document fee, on 6 to 24 month interest-only terms. Where a file lands inside that range depends on leverage, legal access, survey and title condition, and the exit. All terms are subject to underwriting and approval. ### How much cash do I need to close on a Texas land loan? Cedar Top lends up to 65% of market value, so plan on at least 35% of the price in equity, plus points, the $995 document fee, title premiums, and prorations. On a $400,000 parcel that is $140,000 in equity before closing costs. ### Is there a prepayment penalty on the land loan? No. You can sell or refinance at any point in the 6 to 24 month term, and interest stops when the loan is paid off. ### Does a land loan require a minimum credit score? There is no minimum credit score, though credit may be reviewed, subject to underwriting. The parcel, legal access, title, and the exit carry the file. ### How fast can a Texas land loan close? As little as 24 hours pending title work, subject to underwriting, documentation, and approval. In practice the title commitment and the survey set the pace, so those should go to the title company first. ## Related reading - [New Construction Loan Requirements for Texas Builders](https://cedartoplending.com/blog/new-construction-loan-requirements-texas/) New Construction Learn what Cedar Top may review for a Texas new construction loan, including plans, budget, the lot, draws, documents, and the completion exit. - [Bridge Loan Requirements for Texas Investors](https://cedartoplending.com/blog/bridge-loan-requirements-texas/) Bridge & Commercial Learn what Cedar Top may review for a Texas bridge loan, including the property, equity, timeline, documents, and a clear refinance or sale exit. - [Commercial Hard Money Loan Requirements in Texas](https://cedartoplending.com/blog/commercial-hard-money-loan-requirements-texas/) Bridge & Commercial Learn what Cedar Top may review for a Texas commercial hard money loan, including the property, income or value-add plan, equity, documents, and exit. This article is general education for real estate investors, not financial, legal, or tax advice. Non-owner-occupied investment property only. Terms, rates, and availability are subject to underwriting, collateral review, title review, documentation, and approval. This is not a commitment to lend. See our [disclosures](https://cedartoplending.com/licensing-disclosures/). --- Canonical URL: https://cedartoplending.com/blog/texas-land-loan-rates/