March 24, 2022
Trying to find hobby farm loans to help you achieve your dream of self-sufficiency? A hobby farm is commonly defined as “a small farm operated for pleasure or supplemental income rather than for primary income.” In the last decade, more and more Americans have decided they want to know where their food comes from. Many are growing their own food, raising their own poultry and livestock, and reconnecting with nature through hobby farming. The most recent USDA Farm Census, published in 2017 indicated that farms from 1-9 acres made up 0.1 percent of all farmland, accounting for 273,000 farms. That’s a lot of gardens and chicken houses!
If you have looked for hobby farm loans, you may have discovered that not all lenders are interested in making such investments. Fortunately, there’s The Farm Loan Center. As our name implies, we are in the business of farm loans. Our loan specialists can help you find and apply for a loan that meets your needs.
Here are some of the guidelines and requirements for the loan and the property:
- The minimum loan amount for a hobby farm loan is $100,000
- Maximum loan amount is $3,000,000
- You can receive financing for up to 80% of the purchase price without needing mortgage insurance
- You can refinance or cash out up to 80% of the appraised value of the property
- The hobby farm can serve as either your primary residence or your second home
As with all loans, there are also borrower requirements:
- Your income must be verified with pay stubs and/or copies of your tax returns
- Your credit score should be over 620, and there is no stated income documentation
- Your debt-to-income ratio must not exceed 36%
- The dwelling must be 25% of the overall value of the property
The Farm Loan Center works with clients in all fifty states, with an emphasis on helping veterans secure the financing they need. The lenders we work with have provided hobby farm loan options to more than 300,000 farmers and rural homeowners.
Whether you are a first-time hobby farmer in Ohio or an experienced cattleman in Colorado, we can help you find hobby farm loans to suit your needs and your budget. Contact us at (800) 644-9039 or fill out an online application. We can help you attain the lifestyle you want.
Posted in Farm Loan, Hobby Farm Loans
