Texas Land Financing FAQs

Buying land, building a house, and moving to a new area is exciting, but there are bound to be questions. Below you will find answers to some of our most frequently asked questions about living in the Texas Hill Country.


Q: How are land loans different from home loans?

A: Land loans will typically have a shorter term than home loans. Instead of a 30-year term like you would see for a mortgage, the loan could be as little as a few years. Down payments are also typically higher with a land loan, and are determined by examining the loan-to-value (LTV) ratio. This is calculated by dividing the amount of the loan by the property’s value or purchase price, whichever is lower.


Q: Am I limited to a fixed rate loan when buying land?

A: Just like a home loan, land loans can be fixed rate or adjustable. Farm or agricultural financing may also be available depending on the land purchase.


Q: Where do I find financing for a land purchase?

A: If you are already working with a lender, he or she should be able to find you the most viable sources of financing for your property. If you are buying raw land, mortgage companies, lenders, commercial banks, and farm credit lending organizations are your best bets.

At Vintage Oaks Realty, our realtors can help you find the perfect lot to build your dream home, help you envision where your home will be best positioned on the lot and assist you with finding the best local lending options.


Q: How do I know which lender to go with for my land loan?

A: Any time large decisions—and large amounts of money—are involved, it’s important to get referrals from people you trust. You can narrow down your options further by making sure the lenders you are considering are knowledgeable about the industry and land loans in particular, and are familiar with the area in which you are looking and local land values.



Q: Is New Braunfels good for families?

A: New Braunfels is a top place to raise a family, and places like Schiltterbahn Waterpark, Landa Park, Fischer Park, and the McKenna Children’s Museum are just a few reasons why.


Q: How are the local schools?

A: The Comal ISD is a highly rated school district and all campuses in the district are fully accredited by the Texas Education Agency (TEA).



Q: What is the Texas Wine Trail?

A: The Texas Wine Trail is a collection of 42 unique Texas wineries dotted throughout the Hill Country.


Q: Is there really wine in Texas?

A: The United States is the fourth-largest wine producing country in the world, and Texas wines represent one of its fastest-growing areas. Today’s Texas wines are not only appreciated locally but are also being recognized with national and international awards.



Q: What are the advantages of building a house in the Hill Country?

A: Between the convenient location, the growing real estate values, the continued job growth, and the abundance of things to do and see, the Hill Country is one of Texas’ most popular areas for building a house.


Q: Can I build any type of home I want?

A: Several communities have architectural guidelines set up through a neighborhood Covenants, Conditions, and Restrictions (CC&Rs) to protect home values. Your realtor will be able to provide further guidance based on where you are looking.


Q: Do you have to build right away once you buy land?

A: This depends on the neighborhood but several communities in the area do not have a timeframe to start building.


Q: Can I use any builder I want?

A: Depending on the neighborhood, many custom communities do not require to use a specific builder. Other semi-custom areas have specific builders.



Q: Are there employment opportunities nearby?

A: New Braunfels offers numerous employment opportunities with major employers including the Comal Independent School District (CISD), Schlitterbahn Waterpark, and Walmart Distribution Center. The city’s location between Austin and San Antonio also puts it within easy reach of two dynamic employment centers.


Q: How about dining, shopping, and entertainment?

A:  New Braunfels is a hotspot for each. Shopping ranges from the historic main plaza in Downtown New Braunfels to the Premium Outlets that have been voted among the “Best places to shop” by the Austin Business Journal just up the street. Restaurants reflect an international flavor and boast some of the best in Texas eats. Entertainment is largely focused on the Hill Country’s thriving music scene.

Are you a music aficionado? Do you want to live in the heart of the Hill Country music scene? Download our free guide now to discover everything you need to know about visiting and living in the heart of the Hill Country music scene!


Q: What is a good road trip from San Antonio, TX to see foliage?

A: The Hill Country is a great place to see Texas wildflowers. Bluebonnets as well as greenthreads, Indian blankets, Texas paintbrush, and winecups are all on display, typically starting in April.


Q: What are some historical facts about New Braunfels?

A: New Braunfels was established by Germany’s Prince Carl of Solms-Braunfels, Commissioner General of the Adelsverein.

Settled by Germans and named for the city of Braunfels in Germany, it still reflects its German heritage in many of its restaurants and its famed annual Wurstfest celebration.


Q: What are some interesting facts about New Braunfels?

A: New Braunfels was established in 1845, and by 1850 was the fourth largest city in Texas, behind  Galveston, San Antonio, and Houston.

The town of Gruene, located within the city limits of New Braunfels and also known as the Gruene Historical District, suffered under the cotton crop disaster of the Boll Weevils. Gruene Hall, the famed dance hall, was the one business that never closed. Today it is one of many landmarks in the town and a favorite spot for live music and dancing.


Q: What are the important land features of the Texas Hill Country?

A: The topography of the Texas Hill Country is surprising for those who are seeing it for the first time and remains just as magical when you’ve seen it every day for years. Despite the notion that Texas is flat, the Hill Country is defined by its Tuscan-like landscape, with rolling hills and towering live oaks, as well as several sparkling bodies of water.



Q: Is there a Homeowners Association?

A:  The POA establishes certain deeds and covenants to ensure some consistency of architecture and presentation in communities, which can protect property values.

Q: Why is a POA important?

A: A POA serve a vital need in communities by helping to establish and maintain important standards. In areas without POAs, residents and land or homeowners can suffer from lowered or non-existent standards that can harm property values.

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