United Farm Mortgage
For 35+ years, American farmers and rural communities have come to us to be provided with loans for their farms & properties.
- Sean McCaffrey
Long Term Commercial Loan | |
| Property Types | Agriculture, Land Entitled |
| Lendding Area | NATIONWIDE |
| Loan amount Minimum | $150,000 |
| Loan amount Maximum | $2,500,000 |
| Points Minimum 1st TD | 1 |
| Terms | 15 year, 30 year |
| Credit Score Min | 680 |
| Interest Only or Amortized | Amortized Only |
| Lien Position | 1st |
| Prepayment Penalty | No Prepayment Penalty |
| General Pricing or Guideline info | What is a hobby farm loan? A hobby farm loan caters to those who dream of embracing a more rural lifestyle while maintaining their primary source of income outside the farming realm. This unique financing option enables you to purchase or refinance your very own picturesque property and enjoy agricultural pursuits on a smaller scale, such as raising livestock for personal use or cultivating crops in limited quantities. Hobby farm loans distinguish themselves from conventional mortgages by addressing specific requirements necessary when acquiring land intended for mixed residential and recreational purposes. These versatile financial products accommodate properties spanning 5 up to 160 acres, provided that around 30% of the total value stems from the dwelling itself. While these non-traditional mortgage offerings have some similarities with the mainstream counterparts, such as needing credit scores of at least 680 and a down payment of 20%, it is important to look closely at the different eligibility criteria prior to beginning the journey towards owning a lovely retreat far away from city life. Why is it different from other loans or mortgages? A hobby farm loan differs from other mortgages and loans in several significant ways. Firstly, it primarily targets properties where the land comprises over 30% of the total property value, which goes beyond conventional loan guidelines. This flexibility grants borrowers greater opportunities to acquire rural or semi-rural lands with a less restrictive evaluation process. Another unique aspect is its focus on financing hobby farms rather than commercial ones. This means that while you may generate some revenue through agricultural activities like selling products or raising livestock, these earnings should not be your primary income source. Additionally, there are specific acreage limits for qualifying properties in this mortgage category, ranging between 5 and 160 acres, which cater specifically to hobby farm enthusiasts |
| Updated as of | 2023-11-13 |
Long Term Commercial Loan | |
| Property Types | Agriculture, Land Entitled |
| Lendding Area | NATIONWIDE |
| Loan amount Minimum | $250,000 |
| Loan amount Maximum | $50,000,000 |
| Credit Score Min | 680 |
| Interest Only or Amortized | Amortized Only |
| Lien Position | 1st |
| Prepayment Penalty | No Prepayment Penalty |
| General Pricing or Guideline info | The minimum loan amount is $250,000 with 70% loan to value offered in all states. At this time we have a $50,000,000 maximum loan amount. All borrowers need a minimum credit score of 680 or better to qualify. Adjustable and fixed rates are available and you can feel safe uploading your loan information online with our completely secure form-uploading feature. Most loans have payments that are due monthly or semi-annually, but we are able to set up an annual payment if special arrangements are made. Your enterprise can even be as small as 20 acres of land. |
| Updated as of | 2023-11-13 |
Long Term Commercial Loan | |
| Property Types | Agriculture, Land Entitled |
| Lendding Area | NATIONWIDE |
| Loan amount Minimum | $400,000 |
| Loan amount Maximum | $2,500,000 |
| Credit Score Min | 660 |
| Interest Only or Amortized | Amortized Only |
| Lien Position | 1st |
| Prepayment Penalty | No Prepayment Penalty |
| General Pricing or Guideline info | United Farm Mortgage will help you do the following, among others. 1. Start, expand, improve, strengthen, market, or transition ranch or family farm operations. The size of the operation does not matter as long as it earns a reasonable income each year and the loan amount is above $250,000. 2. Commence farming as a woman farmer, ethnic minority, or racially underprivileged farmer. 3. Enable siblings to maintain the operation. 4. Are you involved in organic farming, want to add value, or make your direct sales efficient? You are one of the targets of farm loan programs. 5. Are your operations classified as alternative farming methods? This category covers aeroponics, hydroponics, freight container farming, and vertical farming, among others. You will get more details from officers of the organizations to evaluate your eligibility. Farm loans are available as full-time farm loans or part-time farm loans. This depends on how you run your farm. If all you do is farm on land, you will be eligible to get funding. If you engage in other activities and take farming as a hobby or pass-time activity, you will still be eligible. The Basic Qualifications for A Farm or Ranch Loan 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) |
| Updated as of | 2023-11-13 |
Long Term Commercial Loan | |
| Property Types | Land Entitled, Land Non-Entitled |
| Lendding Area | NATIONWIDE |
| Loan amount Minimum | $250,000 |
| Loan amount Maximum | $2,500,000 |
| Credit Score Min | 720 |
| Lien Position | 1st |
| Prepayment Penalty | No Prepayment Penalty |
| Intended Occupancy | Owner Occupied Business |
| General Pricing or Guideline info | Loan Qualifications There are different types of land loans, and each has qualifications to be met by borrowers. However, general rules apply to all land loans you should meet as a borrower. • A good credit score, preferably above 720 • A detailed explanation of your intent with the land loan • Mention necessary property checks such as surveyed boundaries, zoning, access to utilities, and land-use restrictions. These are the factors that land loan lenders use to determine the obligations and rates of the loan. Land loans generally have higher interest rates, but you can get better rates with a good debt-to-income ratio and credit score. |
| Updated as of | 2023-11-13 |
Long Term Commercial Loan | |
| Property Types | Agriculture, Land Entitled |
| Lendding Area | NATIONWIDE |
| Loan amount Minimum | $250,000 |
| Loan amount Maximum | $5,000,000 |
| Credit Score Min | 680 |
| Lien Position | 1st |
| General Pricing or Guideline info | When obtaining farm property loans, many companies fail to include equestrian facilities in the list of properties they provide loans to. United Farm Mortgage is set apart from other companies because we don’t exclude equestrian facilities and welcome boarding, training, or personal horse properties of all descriptions. These loans currently have a 70% loan to value and are eligible for properties with a minimum of 5 acres. There is no maximum loan amount or acreage amount. If there is a home located on the property, both the house and land values may be used in the price appraisal. Second homes also qualify. It is not necessary that the property owner resides on the property. As with all of our loan programs, a credit score of at least 680 is needed to qualify. Equestrian facilities loans are available in all 50 states. |
| Updated as of | 2023-11-13 |
Summary of all Guidelines | |
| Loan Types | Commercial Loan |
| Property Types | Agriculture, Land Entitled, Land Non-Entitled |
| Lendding Area | NATIONWIDE |
| Loan amount Minimum | $250,000 |
| Loan amount Maximum | $50,000,000 |
| Points Minimum 1st TD | .75 |
| Points Maximum 1st TD | 1 |
| Terms | 30 years |
| Credit Score Min | 720 |
| Interest Only or Amortized | Amoritzed |
| LTV Bridge | 65 |
| Personal Guarantee /Recourse Required | Personal Guarantee Required / Recourse |
The process of getting a commercial farm can be intimidating & overwhelming, making it important to choose a company that can guide you through. United Farm Mortgage has what it takes to get you through loan complications. For 35+ years, American farmers and rural communities have come to us to be provided with loans for their farms & properties.
Our mortgage experts have unequaled insight into the requirements of the agricultural loan process and the knowledge to fulfill the needs of our customers.
United Farm Mortgage is located in Leawood, KS. They offer financing for Commercial Loans. The property type they primarily lend against is Agriculture, Land Entitled and Land Non-Entitled. Their minimum loan amount is $250,000. Their maximum loan amount is $50,000,000. Maximum duration of 30 years. Points charged are deal specific, but historically have charged a minimum of .75. Maximum points charged are 1.
These descriptions are limited information and meant for general reference purposes.
6500 W. 132nd Terrace
Leawood,
KS
66209
