Many loan officers overlook hobby farm buyers because they don’t fit the conventional mold of a borrower. However, at United Ag Lending, our expert team recognizes the immense value of this market and wants to share our knowledge with you.
You can cater to this underserved group and diversify your loan portfolio with help from our flexible land financing services.
Benefits of Serving Hobby Farm Borrowers
Lending to hobby farmers offers low risk, high demand, and reliable profits, making it an excellent area for expansion.
Low Risk
Hobby farmers typically have primary income sources outside of their farming, such as a salaried job, business ownership, retirement funds, or other investments.
While hobby farms might not generate significant income, they also don’t require the same overhead or investment that commercial operations tend to. Therefore, hobby farm lending is a stable, long-term investment.
Growing Demand
The demand for rural real estate purchases has been rising steadily, driven by people seeking a lifestyle change. More individuals are looking to move to the countryside and enjoy the tranquility of agricultural land, especially since the pandemic. Home buying in rural areas showed a 3% increase from 2010 to 2019, compared to a 5% decrease in urban areas.
This presents an untapped opportunity for loan officers to capitalize on land financing for hobby farm buyers. Growing interest in rural properties translates to a steady rise in loan demand.
Profit Potential
Working with United Ag Lending opens you up for these long-term, profitable relationships with hobby farmers. These borrowers are often loyal to their lenders, as you’re the one that helped them bring their aspirations to life. As a result, you’re also likely to receive referrals from them to other clients interested in farming.
With little competition, hobby farm loans offer a unique chance to grow your portfolio and earn meaningful profits.
How We Make Land Financing Accessible for Loan Officers
At United Ag Lending, we offer flexible loan terms for agricultural properties that most lenders don’t. We understand each hobby farm possesses unique characteristics, so we provide custom loan products for each client. Generally, our loans for these properties range from 5 to 160 acres, broadening the potential for your client.
Keep in mind, you don’t need expertise in farm lending to enter this business, as our team guides you every step of the way. With our approach to land financing, you can work with diverse borrowers and secure deals that are unattainable through traditional methods.
Talk to Our Experts About Hobby Farm Lending
Ready to expand your offerings and make connections with new clients? Join our team of lending partners to gain an upper hand in conquering this unique market.
Reach out the United Ag Lending for more information about land financing solutions for your clients.
Recent Comments