The United Ag Lending team fields questions every day online, on the phone, and in person. Knowing the answer to these 3 top questions about farm credit loan requirements helps you understand the process from the start.
The applications that loan officers and borrowers need to submit can be difficult. Requirements for loans change depending on the buyer, the purpose, and the financial wherewithal.
As always, contact us to discuss your client’s farm ideas. From hobby farms to heavyweight rural investors and more, we’re here to help make agricultural goals come true.
1. What kind of farm loans can United Ag Lending help with?
For the most part, loan officers prequalify their clients with us for loans to:
- Purchase a commercial farm, hobby farm, ranch, some agricultural land, or a rural home.
- Expand an existing property.
- Refinance an existing loan.
Related topic: Explore the United Ag Lending’s Simplified Farm Land Loan Requirements
2. What credit loan requirements does a loan officer need to vet from a borrower?
Though not exhaustive, here’s a list of common requirements that should be verified:
- Property will have agricultural use
- Property is agricultural in nature
- Loan amount is $500,000 at minimum
- Property encompasses at least 10 acres
- Buyer has a 680 minimum credit score
These base requirements don’t exist to bar farmers who need support. Instead, we use them to support those who best align with the programs we offer, putting each recipient in the best position for success moving forward.
3. What kind of documentation will a borrower need to bring?
When you’re ready to turn in an application, you should make sure to have the following documents for the borrower, since those get reviewed with the application:
- Driver’s license or other government-issued ID
- 2 to 3 years of tax returns
- Bank statements
- Pay stubs
- Balance sheet (if applicable)
- YTD profit and loss statement (if applicable)
- Asset information (stocks, retirement accounts, etc.)
Let’s Work Together Toward a Successful Loan
We’re here to help loan officers understand farm credit loan requirements to prequalify borrowers and submit scenarios confidently. Explore the United Ag Lending Loan Tool and discover how agricultural loans can help you diversify your pipeline and deliver more options for your clients.
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