How do lenders underwrite water when financing agricultural land?
Lenders underwrite water as collateral reliability: what right serves the land, how senior it is, whether it legally conveys, and whether it survived recent droughts. At Turnrow, water evidence feeds directly into the appraised value we lend against — up to 70% LTV, up to $1.5M, with a term sheet in 24–48 hours.
The core file a lender wants: the state water right record or district/ditch statement, proof the right is in the borrower's (or seller's) name, assessment and delinquency status, well permits and logs for groundwater, and delivery or pumping history through the last drought cycle. Appraisers then value the land as irrigated only to the extent the water is verifiable.
Structural checks follow. Ditch shares and district allocations must be pledged or confirmed to travel with the land, because collateral that loses its water at foreclosure is dryland collateral. District and ditch assessment liens typically prime a mortgage, so lenders confirm zero delinquency at closing. In SGMA basins, the pumping allocation trajectory over the loan term gets specific attention.
Because our loans run 12–36 months and are business-purpose bridge capital, the analysis centers on value durability through the term and the exit — not on farm operating income. That is why we never ask for tax returns or financials: the water file and the appraisal do the talking, alongside a 680+ credit score from a soft pull.
The Turnrow angle
Practical translation: a borrower who shows up with the state record, district statement, and well logs is 80% of the way to a clean appraisal. We lend against what the water evidence supports.
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