Agricultural & Rural Loans

Agricultural & Rural Loans can be broken down into specific sub-topics.

Rural Loans (typical key criteria)

  • Single-family, owner-occupied, detached primary residence located on the property.

  • Must be located in a rural area or municipality with a population of 2,500 or less.

  • Maximum loan-to-value of 97% with a maximum loan amount of $417,000.

  • Dwelling value may not exceed $269,807.

  • Private mortgage insurance required with loan-to-value greater than 80%.

  • Typical contributory value of the dwelling should represent a minimum of 35% of the loan amount.

  • Minimal farm income generated from the property allowed (no more than 25% of gross income). However, no farm income is required.

  • As-is value of the outbuildings must not exceed 20% of the appraised value.

  • Acreage must be typical as supported by comps and property must be residential in nature

Hobby Farm Loans (typical key criteria)

  • Minimum loan amount is $100,000, with a minimum of five acres. (No maximum acreage.)

  • Maximum loan-to-value 80%, with a 680 credit score and no history of bankruptcy or foreclosures.

Agricultural Loans (typical key criteria)

  • Max loan amount up to $30 million.

  • Five-acre minimum, with no maximum acreage.

  • Minimum credit score of 680.

  • Monthly, semi-annual, or annual payments.

  • 7-, 10-, 15-, 20-, and 30-year terms available.

  • Executive Estates are eligible.

  • Maximum loan-to-value ratios:

  • 70% for loans up to and including $5 million.

  • 60% for loans greater than $5 million.

USDA Rural Loans (typical key criteria)

  • Maximum Loan Amount: 100% Appraised Value PLUS Upfront Guarantee Fee (101% financing)

  • Interest Rate: 30-year fixed rate term negotiated between applicant and lender. No cap on rate.

  • Seller/Interested Party Contributions: Allowable up to 6% of sales price. No limit on gift funds.

  • Applicant must agree to personally occupy the dwelling as primary residency within 60 days of closing.

  • Must be a U.S. citizen, U.S. non-citizen national or Qualified Alien.

  • Must be unable to obtain conventional financing with no PMI and a 30-year fixed rate term.

  • NOT limited to First Time Home Buyers.

  • Income of all household members 18 years of age and older cannot exceed USDA Guidelines (cannot exceed 115% of median household income).

  • No minimum credit score. However, lender or investor may require one.

  • Restricted to non-urban areas

  • No acreage limit. Site size must be typical for the are and have no land or buildings principally utilized for income producing purposes.

  • Closing Costs and Prepaids can be financed in the loan amount if there is room is the appraised value over the purchase price.


Product guidelines are determined by the the corresponding Government-Sponsored Enterprise (GSEs) such as Fannie Mae, Freddie Mac, FHA, etc. and are subject to change. Lenders and investors may have their own additional requirements/conditions called overlays. Not all programs are available in all areas. This is for informational purposes. Discuss your loan needs with a licensed mortgage professional.