November 11, 2021
VA farm loans are known by some who have served in the Armed Forces, but perhaps you were unaware that they are available. 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 lead the rural life they desire.
In addition to offering loans for the initial purchase of a farm property, the VA also has a program that will allow veterans to refinance their current mortgages. With a VA-backed cash-out refinance loan, you can refinance your loan with a new one, with different terms. This includes moving from a non-VA-backed loan to a VA-backed loan. You can also cash out up to 90% of the current equity in your home. If you have high-interest credit cards or other debt that is straining your budget each month, this may be a great option for you. Funds from VA farm loans received under this program can also be used to finance home or farm improvements, vehicle or equipment purchase, or anything else you want. The money is yours to use as you see fit.
Here’s a cash-out refinance example:
Value of the home is $350,000. Current mortgage balance is $200,000.
90% of $350,000 = $315,000. After paying off your current mortgage, you would have about $115,000 cash out to use how 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. Cash out requires a score of 620. For purchases, the minimum score is 580, subject to certain lender requirements.
- Live in the home you’re refinancing with the loan.
Maybe you want to practice self-sustainability as a way of life on a farm in rural Kansas. Perhaps you’re interested in raising cattle on a ranch in Texas, or growing apples in a rural paradise in Oregon? Whatever your reasons, the Farm Loan center can help you determine if you are eligible for any of several kinds of VA Farm Loans. Contact us at (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. Thank you for serving our country. Now let us help you find the farm home of your dreams!