Hobby Farms
A Hobby Farm can be difficult to finance due to the fact that some of the land is used to produce income. Most traditional lenders do not allow for this in their underwriting guidelines. However, there is a great program available that is designed just for this type of property. And, at very competitive interest rates!
Eligible Properties
Single-family, owner-occupied, principal residences or second homes. If the property is less than five acres, $5,000 minimum annual gross sales of agricultural products from the property must be documented. Mixed use and non-contiguous properties are acceptable.
Mortgage Amounts
Maximum loan amount is $3.0 million for purchases and refinances (both cash-out and no cash-out). There is no minimum loan amount. Cash-out refinances may be limited in certain circumstances. Larger loans are considered under special circumstances. Both fixed rate and Adjustable Rate loans are available.
Eligible Borrowers
Eligible borrowers include U.S. citizens or nationals or aliens lawfully admitted for permanent U.S. residence; private corporations or partnerships where members, stockholders or partners holding a majority interest in the entity are U.S. citizens or nationals or aliens lawfully admitted for permanent U.S. residence.
Loan-to-Value Ratio (LTV)
Maximum Loan to Value Ratios (LTV) will vary from 50% to 90% depending on
1) loan purpose;
2) loan amount;
3) whether it is a primary or secondary residence; and
4) PMI coverage.
Assumption
Loans may be assumed by borrowers who meet the lender's qualifications.
Complete the form below to get started today on your loan.
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