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.

Disclaimer:

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.