Why Your Ag Exemption Might Kill Your Mortgage Approval

July 21, 2026

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David Ghazaryan

Owner / Broker / Banker

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TL;DR

Purchasing a Texas home with an agricultural valuation can significantly lower your property taxes, but it presents unique challenges for mortgage financing. Lenders may be hesitant due to the risk of misclassifying the property and the potential for tax payments to increase suddenly.

Key insights for borrowers:

Understanding the Lender View: Lenders must ensure they are financing a primary residence, not a commercial farm.
Proving Residential Use: Securing a loan depends on documenting that the property's main purpose is residential through specific appraisals and affidavits.
Navigating the Loan Process: Learn how lenders calculate your qualifying property taxes and why choosing the right loan program is critical to your approval.

Read the full blog article here: https://www.iqratemortgages.com/blog/financing-a-texas-home-with-an-ag-exemption

Video Transcript:

This big tax break can actually make getting your loan harder. I'm David Ghazaryan. I show lenders how to see a home. Lenders must use the bigger tax number, not the smaller one. We prove it is your home first, not a big farm. This is why some loans work better here than others. My full analysis is on our site. See the links below.

Read Blog Here: https://www.iqratemortgages.com/blog/financing-a-texas-home-with-an-ag-exemption

David Ghazaryan

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