Farm Land Loans
Farm land loans are programs intended to help the small "family" farmer who may not qualify for a standard loan.
What are the Eligibility Requirements?
Most farm land loans will have the following requirements:
- Full-time farmer -You may be a hobby farmer as long as you intend to become a fulltime farmer over time.
- State resident -Most farm land loans will be associated with a particular state and will require for you to be a resident of that state.
- Maximum net worth - Most programs are intended for the individual who has limited personal wealth, typically less than $500,000.
- Financial need for a loan and the ability to repay the loan
- Principal operator of the farm
- Willing to consult a student farm management program
A Farm land loan is typically very similar to a standard mortgage. In many cases the terms will be:
- Down payment - Typically this is a minimum of 10%.
- Length of loan - The loan will usually be available up to 30 years.
Farm land loans typically have a maximum totally aggregate amount that may be financed. In many cases this limit is $200,000.
If you are renting acreage and are considering becoming a fulltime farmer, or if you currently own land and want to make farm type improvements, you may want to consider a farm land loan.
