Here are some basic qualifications under both the part time loan program and the full-time farm loan program. If you have questions or you are not sure if you qualify, give us a call and we can discuss your options.
Farm Loan Requirements:
• Minimum Credit Score: 660 (at least one of the three major bureaus)
• Minimum Loan Amount: $400,000.00
• Minimum Acreage: 40 acres (exception: unless permanent planting operation)
• Location: Property must be located within the lower 48 United States
• Income: Must have sufficient income to service all debts (personal and business)
• Purchase: Down payment of at least 30% or additional farm land to use as collateral
• Refinance: Must have at least 30% equity in your property.
• Assets: The sum of all assets owned (including household furniture) must be double what your accumulated debts equal, post purchase – – 60% debt-to-asset ratio
At United Farm Mortgage, we offer competitive rates for land purchases and have repayment terms customized to fit your business’s unique needs.
Our representatives are attentive and friendly and we are always sure to service you from start to finish. We create effective loans, but we also make it simple and hassle-free.
A beginning farmer is an entity or individual or who meets these requires below:
• Has not operated a farm for more than ten years
• Noticeably participates in the farming operation of the newly purchased land.
• Meets the FSA loan eligibility requirements of the program to which either he or she is applying.
• Participates in the business operation of a farm for at least three years out of the ten years prior to the date the application is submitted
• Does not own a farm or ranch greater than thirty percent of the average size farm in the county as determined by the most current Census for Agriculture.
Another qualification to note for entity applicants is that all members must be related by either marriage or blood and all applicants must be considered beginning farmers.