When it comes to securing a hobby farm mortgage, there is a lot to consider. This is especially true when you’re looking to have a farm that best represents you and your interests. 

As agricultural experts, we want you on the right path the first time around—and you can count on us at United Ag Lending to be your guides. 

Here are the top 5 things to look for when looking for quality hobby farm lenders. 

1. They listen and understand your unique situation 

If you’re doing a hobby farm right, it’s a passion project for you. And when we’re passionate about something, we want nothing more than for someone to listen and understand that passion. 

Solid hobby farm lenders will do just that. Your hobby farm may not be your livelihood, but it will be an integral part of your life. A good lender will make sure you have what you need to make that happen.

When you come to United Ag Lending for a consultation, you can expect generosity and thoroughness. We’ll get to talking about your plans and expectations for your hobby farm. Once we have the answers we need, our loan experts will work together to build your custom hobby farm loan.   

2. They customize your program

Customizable programs for hobby farms should be the standard. Each farmer has different goals when it comes to their hobby farm. They aren’t all going to look the same or have the same purpose. 

Trustworthy hobby farm lenders will treat your situation as nuanced as it is. At United Ag Lending, we look at a variety of different factors to best customize your program:

  • Farm size
  • Price of the farm
  • Your living situation 
  • Your credit score
  • Hobby farm use
  • Your financial situation 
  • And more

At a glance, anyone can recognize that each of these listed items will look different for everyone; therefore, the loan program should uniquely match these answers.  

3. Their program requirements are achievable 

The third aspect that’s important to us as ag lenders is making certain that our hobby farm financing requirements are achievable. We never want to unfairly exclude potential clients with strict requirements. 

Traditional lenders are typically unable to finance hobby farms. We sought out to break down these barriers with our program. 

Here are a few things you can do with our program that you may not have with other lenders:

  • Multiple homes/structures are allowed on property
  • You can combine properties into one loan
  • Land value can exceed 30% of appraised value 
  • Schedule F income allowed 

4. The program offers good benefits 

Good benefits go hand-in-hand with customizable programs. Great hobby farm lenders will not only have achievable requirements, they will offer a wide variety of benefits that you can choose to claim or not. Your decision to claim benefits will depend on your goals. 

At United Ag Lending, we allow our clients to enjoy a number of benefits: 

  • Make an income (If not sole income)
  • House up to 50 head of livestock on the land
  • Own multiple parcels of land and parcels within reasonable proximity 
  • Explore loans up to $2 million with Schedule F (Farm) income allowed
  • Fixed 15- and 30-year terms available
  • Have a home with up to 160 acres (more allowed on a case-by-case basis)
  • Ag-Exempt property allowed
  • Purchase, rate/term, and cash out refinances to pay off:
    • Debt
    • Home or land improvements
    • Or serve as cash in hand
  • Consolidate land and construction loans into a permanent mortgage loan
  • Primary homes or secondary homes capability 
  • Land value can exceed 30% of appraised value
  • Dwelling value only requires to be 25% of value (lower allowed on a case-by-case basis)
  • Have a horse facility with indoor/outdoor arena with no limitation on horse stables
  • Have shed homes, barndominium with typical living quarters, log homes and multiple homes on your property
  • And more

These benefits are all available, but not required.  

5. Excellent communication

The final item on our “great hobby farm lenders” list is excellent communication. This is important from the beginning of the process to the end. 

Your lender should be caring and helpful, as well as receptive to your questions or concerns. 

We take this seriously by updating our clients on their status and giving them clear instructions on next steps. We provide helpful tips, give prompt responses, and offer support every step of the way. 

And, the support extends past the extension of the loan. As professional ag lenders, we will continue being a resource for as long as you need it. 

Work with trusted hobby farm lenders

Now that you know how to find the best lenders, you can feel confident in starting the loan process. 

What have you always wanted to pursue? What would you like to do with your hobby farm loan

Our experts at United Ag Lending not only have the means to help you make this financial decision, they want to hear about your plans. 

Contact us or call us if you’re ready to start the process or if you have any questions. 

States we serve for hobby farming:
Arizona, Arkansas, California, Colorado, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Washington, Wyoming.