Rural/Agri Mortgage

WildernesFamily · #1 06/21/06, 05:41 PM

Did you have to get one of these to buy your dream? If so, did you find it more difficult to obtain than a conventional mortgage? Do you have a company you worked through that you could recommend (feel free to pm me on that.)

There seem to be so many more obstacles in trying to get one of these loans than a regular mortgage loan. Ugh.

goatlady · #2 06/21/06, 07:03 PM

IIRC from looong ago, you have to have LARGE amounts of land 160 acres and up and a business plan to generate 100% of your income from the land by ranching or whatever. These loans were originally set up for folks who could not get conventional bank financing. Depends on what your dream is!

Jena · #3 06/21/06, 07:28 PM

Farm Credit Service or a local bank. My small local bank does not make any loans with a fixed rate, but FCS does.

Jena

Paula · #4 06/21/06, 08:30 PM

We've used Farm Credit twice. We're very happy with them. The process was no more difficult than a regular mortgage.

Mike in Ohio · #5 06/22/06, 06:18 AM

Farm Credit Services. I've gotten a number of loans through them and haven't encountered any particular issues dealing with them. For raw land expect to pay a point more than a residential mortgage (primary residence) assuming you have good credit.

Mike

Dutchie · #6 06/22/06, 06:28 AM

How much acreage are we talking about?

michiganfarmer · #7 06/22/06, 06:30 AM

I was lucky enough to buy from owners who were willing to sell to me with a land contract.

WildernesFamily · #8 06/22/06, 08:37 AM

Thanks everyone. Looks like Farm Credit Services is the way to go.

Dutchie, we're looking at properties between 40 and 80 acres.

Michiganfarmer, wish we could get a deal like you got!