Long Term Commercial Loan
Hobby Farm Loan - LG318
Hobby Farm Loan - LG318
Summary of all Guidelines | |
| Loan Types | 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 |
| Program Code | LG318 |
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
These descriptions are limited information and meant for general reference purposes.