Homestead farming can mean different things to different people. That’s why our homestead funding options are highly customizable, making them perfect for this niche audience.

United Ag Lending offers a variety of loan programs that are perfect for brokers, mortgage lenders, and bankers who work with diverse agricultural customers.

Keep reading to learn more about our homestead funding loan offerings and how we can customize this loan product to meet your clients’ needs.

Options for Homestead Funding

While a homestead can refer to different property types, we generally use this term to refer to a home on rural land. This broad definition allows us to customize our loans to address the preferences of your diverse farming customers.

Our loan officers use the following loan products to help lending partners meet your homestead client needs:

Hobby Farm Loan

United Ag Lending’s hobby farm loan program is one of our most unique offerings. These homestead farming loans are ideal for clients who want to live on the land that also houses a small-scale farming operation.

Hobby Farm Details

This loan product is very flexible when it comes to homestead funding. We designed our hobby farm loan program to address the needs of people who want to embrace one or more of their agricultural hobbies and live in a rural setting. Most traditional lending institutions don’t offer this type of loan.

While hobby farms aren’t financially motivated, your clients can choose to make money off what they farm, as long as what they make is considered secondary income. Your clients can also choose to live on their hobby farm full-time or to have it serve as their secondary residence.

Hobby Farm Loan Features

United Ag Lending’s hobby farm loans have these unique features:

  • 15- and 30-year fixed-rate loan terms.
  • We permit multiple homes and structures on the property.
  • We allow schedule F income.
  • Land value can exceed 30% of appraised value.
  • The dwelling value must be 25% of the overall value; lower values are allowed selectively.
  • There are no early payment penalties.

Hobby Farm Loan Requirements

This loan program has a few requirements. Consider the following criteria to see if your customers qualify for this loan:

  • The farm land must have property that serves as your client’s secondary or primary residence.
  • The property must be agricultural in nature.
  • The farm must be located on a minimum of 5 acres.
  • Your client must have a credit score of 680 or higher.

Hobby Farms We’ve Helped Finance

While this list doesn’t include all the hobby farms we’ve helped finance, it’s a representation of the diverse projects we like to work on. We enjoy hearing customers’ unique hobby farm ideas:

  • Bee farms
  • Berry farms
  • Chicken and equestrian operations
  • Farms with pasture and vineyards
  • Farms to raise livestock

Rural Residential Loan

Do you work with or want to find more customers who want to buy property in a rural area? If so, these homestead funding options are a great fit.

We customize our wholesale rural real estate loans to help you reach clients who want to secure agricultural property that will serve as their primary residence or a secondary home used for recreational purposes.

Rural Residential Features

We’re able to offer rural residential homestead farming loans with the following features:

  • Fixed-rate terms at 15 and 30 years with available low rates; purchase, refinance, and cash-out loans are also available.
  • We permit owner-occupied and secondary homes.
  • We permit but don’t require ag-exempt properties.
  • Schedule F (farm) income is permitted.
  • Barndominiums, shop, and shed homes are allowed. We also permit homes with tillable acreage and pasture land.

Rural Residential Requirements

The property and your clients will need to meet the following criteria to qualify for one of our agricultural land loans:

  • The homestead needs to be on 5 acres, minimum, and 160 acres, maximum. Its value is only required to be 30% of the overall value.
  • The homestead land must have a pre-existing home that is your client’s secondary or primary residence.
  • The homestead must reside in a rural area.

Commercial Farming Loan

We also create customized real estate homestead funding to help clients grow their commercial agricultural company, increase their farm capital, or consolidate an existing farm loan.

We understand that all commercial farming operations are unique. We’re ready to customize this product to meet your customers where they’re at.

Commercial Farming Loan Features

We’re able to offer commercial homestead farming loans with the following qualities:

  • No prepayment penalties and 30-year fixed-rate loans are available.
  • Monthly, semiannual, or annual payment options are permitted.
  • We also offer adjustable-rate loan options.
  • Seller carriers and cross-collateralization is allowed.
  • Loans up to 70% of appraised value are permitted.

Commercial Farming Loan Requirements

We do have a few requirements for our commercial loan products. The property/client should meet the following criteria:

  • The property must be agricultural in nature.
  • Our minimal commercial loan is $500,000.
  • The property must be on a minimum of 10 acres.
  • Your client needs a 680 credit score or higher.

Types of Commercial Farms We’ve Financed

The following are just a few examples of the types of commercial farms we’ve helped our lending partners’ clients realize:

  • Orchards
  • Vineyards
  • Equestrian operations
  • Dairy farm
  • Ranch to raise livestock
  • Cattle operation
  • Various produce farms, including but not limited to almond, avocado, blueberry, soybean, or orange groves
  • Farms with pasture
  • Other types of farms

Customized Solutions for Unique Clients

United Ag Lending’s homestead funding options are flexible, thanks to our wholesale lending team’s extensive experience in the industry. Our loan solutions focus on wholesale agriculture products; we never get distracted by other loan products.

Banks, mortgage lenders, and brokers choose to partner with us for the following reasons:

Exceptional Customer Service

Our team is composed of ag industry experts dedicated to building and cultivating relationships with talented professionals in the agricultural industry. These relationships help us ensure that our loan products stand out from others in the market, delivering the best for your clients.

When you work with United Ag Lending, your customers will benefit from our 3-step lending process, which includes the following:

  • Consultation: Our account executive will work with you and your client to ensure they can meet our loan requirements. We’ll also ask questions to better understand your client’s homestead needs.
  • Recommendations: Based on your client’s information, we’ll provide a list of homestead funding options.
  • Application: We’ll assist your customer through the application process and ensure they know what documents they need to make it go smoothly.
  • Continued Resource: Our team will stick with you and your client, even after the homestead loan closing. We know that clear and consistent communication is essential to the lending process.

Competitive Terms, Flexible Loans

As a lender who provides homestead funding options to unique clients, we understand that agricultural real estate financing isn’t a one-size-fits-all industry. Our loan programs will offer your customers flexible loans with competitive terms. We’re truly unique because we’re committed to helping your clients’ farming dreams become reality.

Specialized Agricultural Products

We know that customers who want to embrace homesteading are unique and have custom needs. Traditional lending institutions don’t have the experience and expertise we do; addressing specialized agricultural needs is common knowledge for our team.

We have several flexible homestead farming loans that can:

  • Provide customers with creative and competitive homestead funding solutions.
  • Allow loan officers to originate wholesale homestead real estate loans they couldn’t in the past.
  • Get loan officers access to new agricultural customer opportunities.

Our tailor-made loan products are comprehensive and diverse. Whether your client wants to live on a homestead with pasture or is looking to add a second rural home with land to raise livestock, our wholesale loan products can help.

Partner With United Ag Lending for Premier Homestead Funding Options

With United Ag Lending, you can count on us to provide you with the wholesale real estate loan products your customers need. We are experts at providing homestead funding options to unique agricultural clients. Our wholesale lending team has the knowledge, customer service, responsiveness, and communication skills that set us apart from other agricultural loan lenders.

United Ag Lending’s homestead funding programs perfectly represent what we do best—we take the conventional understanding of a homestead loan and turn it into a flexible solution. We know that most wholesale lenders have limitations on what your customers can accomplish with homestead properties. Our team is excited to give your clients the flexibility to achieve their farming dreams.

You can count on our company to continue expanding its offerings, bringing the opportunity to originate homestead mortgages to more and more loan officers nationwide.

Are you interested in becoming one of our trusted lender partners? Contact us today to find out more about our loan products and services.

United Ag Lending’s TPO Licensed States: 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, and Wyoming