Brandon Klepac

 

Homeowner, Farmer

Banquete, TX

Relationship with Farm Credit: Mortgage borrower

Size of Home:  2,000 square feet

Years in Residence:  2 months

Farm Credit Partner:  Capital Farm Credit

Time Working with Farm Credit: 6 months

Purchasing a home can be a challenge for anyone; when combined with a variable farm income, the challenge can seem insurmountable. Brandon Klepac, a twenty-five-year-old Texas farmer, found a way past the hurdles to not only purchase, but to build his own home. His two-story “Barndominium,” which also serves as a workshop for his family’s farming operation, is part of growing trend in rural areas to combine work space with living space.

When Brandon decided he wanted to move to a new home, he first contacted a commercial bank to secure a traditional mortgage. His parents have been Farm Credit customers for years, but the family wanted to keep Brandon’s personal financing separate from their farm financing. However, after discovering that the bank wasn’t able to provide him a mortgage because of his unusual income stream, they contacted Capital Farm Credit (CFC) to see if it could help. As the first step, CFC assuaged the Klepac’s concerns by assigning a different loan officer, Jeff Bedwell, to Brandon. Jeff then worked to get Brandon the financing he needed.

“Brandon is a perfect example of why Farm Credit is here,” says Jeff. “He’s a young farmer just beginning his career, who wasn’t able to buy a home working with a conventional lender. Because we understand how farm income works, we were able to help him achieve his goal.”

To support the construction project, CFC employed a new product that has a one-time, upfront close with a prime-based interest rate. After Brandon’s home was completed, the loan was converted to a 15-year mortgage. Over the course of the four-month build, Jeff periodically inspected the progress and paid out construction fees.  “It all worked out perfect for me,” says Brandon. “Jeff and I knew each other even before this, and Jeff knew the builder, and the builder knew the process of working with Capital Farm Credit.” 

For some, Barndominiums provide a modest living area for weekend visits; for others, it’s a temporary measure while a more traditional home is being built. For Brandon, it will be his home until he gets married and builds a separate structure, at which point the Barndominium’s first floor will be converted to the farm’s office with the second story remaining available for visiting friends or distant customers.