September 8, 2022
The benefits of VA Farm Loans keep on growing in unexpected ways. With current inflation trends and the housing market as it is, it’s harder than ever to manage debt. Luckily, there are uses for loans through the Veterans Administration that can help you manage your debt.
Credit card usage is up 18% from this time last year. Many homeowners are struggling to get by. Fortunately for veterans, the equity in their homes bought with VA Farm Loans can be used to cash out and consolidate debts.
This consolidation is possible because in addition to offering loans for the initial purchase of a farm property, the VA has a program that allows veterans to refinance their current mortgages. Using a VA-backed cash-out refinance loan, you can refinance your loan with a new one with different terms. This even allows you to replace your non-VA backed loan with one backed by the VA. You can cash out up to 90% of the current equity in your home. This can be used to pay off the balance on high-interest credit cards or other debts.
Funds from VA farm loans received through this program can be used to finance home or farm improvements. Vehicles and equipment can be bought. This money is yours to use as you like.
The eligibility requirements for this type of VA farm loans are listed here:
- You must qualify for a VA-backed home loan certificate of eligibility
- Meet both the VA’s and your lender’s income standards, credit, and other requirements.
- Cashing out requires a credit score of 620
- For purchase the minimum score is 580
- Live in the home you’re refinancing with the loan
Whether you want to practice self-sustainability as a way of life on a farm in rural Kansas, raise cattle on a ranch in Texas, or start an orchard in rural Oregon, Farm Loan Center can help guide you through the process of applying for several kinds of VA Farm Loans. Call us at (800) 644-9039 or click here to contact us online. We want to thank you for serving our country by helping you find the farm home of your dreams.