# Land Financing

<p align="center">
  <img src="https://raw.githubusercontent.com/XelaNull/FS25_UsedPlus/master/gui/icons/cash.png" width="96">
</p>


> **20-year terms. Lower rates. Expand your farm without draining cash.**

## Table of Contents
- [Overview](#overview)
- [How It Works](#how-it-works)
- [Interest Rates](#interest-rates)
- [Down Payment Requirements](#down-payment-requirements)
- [Comparison: Land vs Vehicle Financing](#comparison-land-vs-vehicle-financing)
- [Strategic Expansion](#strategic-expansion)
- [Debt Management](#debt-management)
- [Tips & Best Practices](#tips--best-practices)
- [Troubleshooting](#troubleshooting)

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## Overview

### What Is Land Financing?

Land financing allows you to purchase farmland over **1-20 years** with monthly payments, just like financing vehicles. Unlike vanilla FS25 where you must pay cash upfront, UsedPlus lets you build your farm incrementally.

### Why Land Financing?

**The Old Way:**
- Save \$500,000 cash
- Buy field outright
- Drain your working capital
- Wait months to expand again

**The New Way:**
- Put down 10-35% (\$50,000-\$175,000)
- Finance the rest over 20 years
- Keep cash for equipment and operations
- Expand strategically as revenue grows

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## How It Works

### Purchasing Land

1. **Select Field** - Click on any purchasable field in the map
2. **Choose Financing** - Instead of buying outright, select "Finance"
3. **Configure Loan**:
   - **Down Payment**: 10-35% (credit-dependent)
   - **Term**: 5, 10, 15, or 20 years
   - **Interest Rate**: 6-12% APY (credit-dependent)
4. **Review & Approve** - See monthly payment before committing
5. **Start Farming** - Field is yours immediately

<p align="center">
  <img src="https://raw.githubusercontent.com/XelaNull/FS25_UsedPlus/master/screenshots/farmland_purchase_options.png" alt="Farmland Purchase Options" width="70%">
  <br><em>Choose between cash, finance, or lease when purchasing farmland</em>
</p>

<p align="center">
  <img src="https://raw.githubusercontent.com/XelaNull/FS25_UsedPlus/master/screenshots/farmland_purchase_finance.png" alt="Farmland Finance Configuration" width="80%">
  <br><em>Configure down payment and term for land financing - up to 20 years available</em>
</p>

<p align="center">
  <img src="https://raw.githubusercontent.com/XelaNull/FS25_UsedPlus/master/screenshots/farmland_purchase_lease.png" alt="Farmland Lease Configuration" width="80%">
  <br><em>Lease farmland with lower monthly payments and balloon payment at end of term</em>
</p>

### Payment Structure

| Term | Monthly Payment (on \$500k field, 7% rate) | Total Interest Paid |
|------|-------------------------------------------|---------------------|
| 5 years | \$9,900 | \$94,000 |
| 10 years | \$5,807 | \$196,840 |
| 15 years | \$4,492 | \$308,560 |
| 20 years | \$3,867 | \$428,080 |
| 20 years | \$4,824 | \$657,760 |

**Key Insight**: Longer terms mean lower monthly payments but MUCH higher total cost.

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## Interest Rates

Land financing uses the **same credit-based interest rates** as vehicle financing, but typically **1% lower** because land is more stable collateral.

### Base Rates by Credit Score

| Credit Score | Vehicle Rate | **Land Rate** | Spread |
|--------------|--------------|---------------|--------|
| 750+ (Excellent) | 8% | **7%** | -1% |
| 700-749 (Good) | 9% | **8%** | -1% |
| 650-699 (Fair) | 11% | **10%** | -1% |
| 600-649 (Poor) | 14% | **13%** | -1% |
| Below 600 (Bad) | 18% | **17%** | -1% |

### Why Lower Rates?

- **Land doesn't depreciate** (unlike vehicles at 80% year 1)
- **Can't be destroyed** (unlike equipment breakdowns)
- **Easy to repossess** (field just reverts to seller)

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## Down Payment Requirements

Down payment percentage depends on your [[Credit-Scoring|credit score]]:

| Credit Tier | Down Payment | Example (\$500k field) |
|-------------|--------------|----------------------|
| 750+ (Excellent) | 10% | \$50,000 |
| 700-749 (Good) | 15% | \$75,000 |
| 650-699 (Fair) | 20% | \$100,000 |
| 600-649 (Poor) | 25% | \$125,000 |
| Below 600 (Bad) | 35% | \$175,000 |

**Building Credit Pays Off**: A 750 credit score saves you \$125,000 in down payment vs a 550 score on a \$500k field.

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## Related Pages

- [[Credit-Scoring]] - How your score affects land rates and down payment
- [[Vehicle-Financing]] - Finance tractors and equipment  
- [[Settings-and-Configuration]] - Enable/disable land financing

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**Next**: Learn about [[Trade-In-System|trading in vehicles]] for instant cash.