Looking for hobby farm loans to make your dreams of self-sufficiency a reality? A hobby farm is commonly defined as “a small farm operated for pleasure or supplemental income rather than for primary income.” In recent years,thousands of Americans have discovered the joy and satisfaction of 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.
If you have tried to get hobby farm loans, you may have discovered that not all lenders are amenable to such an investment. But here at the Farm Loan Center, our loan specialists can help you find and apply for a loan that meets your needs. As with most things, there are some requirements and guidelines when you apply. For example, the minimum loan amount for the hobby farm loans we can help with is $100,000 and the maximum is $3,000,000. You can receive financing for up to 80% of the purchase price without needing mortgage insurance, and refinance or cash out to 80% of the appraised value of the property. The hobby farm can serve as either your primary residence or your second home.
There are also some borrower requirements that must be met in order to qualify. 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 42%, and 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 loans to more than 300,000 farmers and rural homeowners. So whether you are a first-time hobby farmer in Kansas or an experienced rancher in Arizona, 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 look forward to helping you start the hobby farm of your dreams!