Sometimes, farmers aren’t full-time farmers. If the borrower has a passion for farming, but wants to do it more as a pastime than a full-time focus, that’s a hobby farm. Year after year, this lucrative market keeps growing.
United Ag Lending specializes in these farm land loans. We help loan officers navigate the sometimes complicated world of rural land financing. What banks can’t (or won’t) do, we can, because of our exclusive lending solutions.
Contact us to discover how we can be a valuable partner for you, so you can achieve your borrower’s goals while expanding your pipeline. Read on to learn what you and your client will need for a successful ag land loan.
Requirements for a Hobby Farm Loan
Hobby farming loan applications rarely meet conventional lender requirements. But United Ag Lending specializes in these loans, with a hobby farm loan program that meets farmers where they are.
Basic requirements for these farmland loans include:
- A 5 acre minimum
- Qualifies as agricultural property
- Borrower has a minimum 680 credit score
- Property has a home that serves as borrower’s primary residence or second home
If the borrower meets all of those requirements, United Ag Lending stands ready to support their hobby farm goals, including discussing farm refinance rates.
If They Don’t Qualify, We Don’t Give Up
If your borrower doesn’t fully qualify, our work with you hasn’t ended. As your preferred financing partner for farm land loans, we can discuss possible adjustments your client can make to reapply.
We may look at other aspects of your borrower’s agricultural goals, such as the productive value of their purchase. The land’s ability to produce income could affect the loan.
Related topic: Tips for Finding a California Hobby Farm Loan
What Is the Minimum Acreage for a Farm Loan?
For a hobby farm, our minimum is 5 acres, with a maximum of 160 acres. If we need to pursue the loan application process through a different approach, the minimum is 10 acres.
How Hard Is It to Borrow Money for Land?
The process for borrowing money for land can be complicated—unless you work with a loan specialist who focuses entirely on agricultural lending.
United Ag Lending is not a bank. We make rural borrowers our only priority. Loan officers discover that their growing portfolio of rural land borrowers have access to specific benefits to secure hobby farm land loans through United Ag Lending.
Don’t Turn Away Clients
Use our Loan Tool to pre-qualify hobby farm borrowers, and speak to United Ag Lending to expand your agricultural portfolio.
