farm loan tips for first time buyer?
I want to buy a farm within the next 5 years. I anticipate about 200k US $ in student loans by that time and about a 100k income with about 60k in savings. I should have a VERY good credit score by that time.
I would like it to be somewhere in the southeastern US and 500+ acres. I want it for woodland, pasture, hay production and has to have a good bit of ground that is not too rocky. I don’t really care about row crops or hunting except for the potential revenue for leasing it out.
How much of a loan could I get, at what rate, and what can I do to maximize my eligiblity for principle and good rates?
Any other insight would be nice.
March 2nd, 2010 at 7:00 am
The United States Department of Agriculture offers loans for rural areas and farms. They have very similar requirements as FHA loans. They are lenient about bad credit. The down payment can be zero. They would be looking for a track record of saving money and a steady job for 2 years altho less time would be possible.
You will also want to check with a local bank about a conventional loan since you have a down payment. Those loans can have better interest rates and lower fees but the down payment is higher.
Probably $364,000 max loan amount for the USDA loan. $417,000 on the conventional.