February 10, 2022
Need a VA Farm Loan to purchase a farm for your family? The Veterans Administration (VA) defines a farm loan as “A loan for the purchase, construction, repair, alteration, or improvement of a farm residence which is occupied or will be occupied by the veteran as a home.” At the Farm Loan Center, we specialize in helping veterans get the financing they need to get started in farming.
In addition to offering a farm loan for the initial purchase of a farm property, the VA also has a program that allows veterans to refinance their current mortgages. With a VA-backed cash-out refinance loan, you can refinance your loan under different terms, including switching from a non-VA-backed loan to a VA-backed loan. You can also cash out up to 85% of the current equity in your home. If you have high-interest debt, such as credit cards, that is putting a strain on your budget each month, this option could be a lifesaver. Funds from a VA farm loan under this program can also be used to finance home or farm improvements, make a vehicle or equipment purchase, or do anything else you want. The money is yours to use as you see fit.
Here’s a cash-out refinance example of a farm loan:
Value of the home is $350,000. Current mortgage balance is $200,000.
85% of $350,000 = $297,500. After paying off your current mortgage, you would have about $97,500 cash out to use as you wish.
You may be eligible for this type of loan if you meet all of the requirements listed below:
- Qualify for a VA-backed home loan Certificate of Eligibility
- Meet both the VA’s and your lender’s standards regarding income, credit, and any other requirements. This includes a minimum credit score of 620.
- Live in the home you’re refinancing with the loan.
If you’re dreaming of living a sustainable lifestyle on a farm in rural Kansas, considering a cattle ranch in Texas, or you’ve always wanted to have an orchard in Oregon, the Farm Loan center can help. We will work with you to determine if you are eligible for a VA Farm Loan. Call (800) 644-9039 and our team of experts will help you get started. If you’d like to see what others have to say about our services, check out our testimonials. You served your country, now let us help you start the next phase of your life.