How to Finance Agricultural Land in Hawaii

Financing agricultural land in Hawaii differs from traditional home mortgages. Understanding your options can save you time and money while helping you secure the right parcel for your farming goals.

USDA Farm Service Agency (FSA) Loans

The USDA offers several loan programs specifically for agricultural land purchases. Farm Ownership Loans through the FSA can finance up to 100% of the appraised value for qualified borrowers. Hawaii’s FSA office works with buyers across all islands and understands the unique agricultural landscape of the state.

Conventional Agricultural Loans

Several Hawaii-based banks and credit unions offer agricultural land loans, typically requiring 20-35% down payment. First Hawaiian Bank, Bank of Hawaii, and American Savings Bank all have agricultural lending programs familiar with Hawaiian farmland transactions.

Seller Financing

Many agricultural land sellers in Hawaii are open to owner financing arrangements, particularly for larger parcels. This can be advantageous when traditional lending is difficult to secure for raw agricultural land without existing structures.

Key Considerations

Agricultural land appraisals in Hawaii require specialized appraisers familiar with agricultural use values rather than development potential. Lenders will also evaluate water access, road frontage, soil quality, and zoning restrictions when underwriting agricultural land loans. Be prepared for longer closing timelines compared to residential transactions, typically 60-90 days for agricultural parcels.