The different definitions of “homestead”

A homestead sometimes refers to agricultural land where the landowners live and feed themselves and their family with the crops they produce. Some homesteaders also make an income off the goods they produce by selling them to local stores. 

Other people use the term “homestead” to refer to their home that is located on rural land, regardless of any crop production. For our purposes, we’ll use “homestead” as a catchall term for a house that lives on a piece of rural land. 

Whether you prefer a farmless rural lifestyle, farming for a living, or you fall somewhere in the middle, we can help you finance. We offer a variety of programs that we can mold to fit what a homestead is to you. These include: commercial farm, hobby farm, rural home, ranch, and refinancing loan programs. 

How do I get a homestead mortgage?

Make sure you meet these requirements

◻️ Property is agricultural in nature

◻️ 5 acreage minimum

◻️ 680 minimum credit score

◻️ It has a home on it which serves as your primary residence or second home  

Meet with us for a consultation 

Our first step is meeting for a consultation. Beforehand, make sure you have your homestead plans and finances in order. The more prepared you are for the process, the smoother it will be. After the consultation, we will have a better idea of your values and how we can best customize your program to align with them. 

Questions we’ll ask:

  1. What is the purpose of the homestead mortgage?
  2. What is the acreage of the land?
  3. What is the land value? 
  4. Does the land have potential for agricultural use?
  5. What loan amount do you need? 
  6. How do you plan to use the funds?
  7. What is your credit score?

Homestead mortgage program benefits

With homestead financing through United Ag Lending, you’ll have access to the following benefits: 

  • Make an income from your farm (though it cannot be your sole income)
  • House up to 50 head of livestock on the land
  • Own multiple parcels of land and parcels within reasonable proximity 
  • Explore loans for up to $2 million with Schedule F (Farm) income allowed
  • Fixed 15- and 30-year terms available
  • Purchase a home with up to 160 acres (more allowed on a case-by-case basis)
  • Ag-Exempt property allowed 
  • Cash out refinancing
  • Consolidate land and construction loans into a permanent mortgage loan
  • Can serve as your primary or secondary home
  • Land value can exceed 30% of appraised value
  • Have a horse facility with indoor/outdoor arena with no limitation on horse stables
  • Have shed homes, barndominium with typical living quarters, log homes, or up to 3 homes on your property

Explore your loan program options with United Ag Lending 

Your homestead shouldn’t be altered to fit into an ag loan program, the ag loan program should be altered to fit your unique homestead. Through different rates, terms, repayment periods, and low down payments, we can make our homestead loan work for you. 

Schedule a consultation

Let’s talk about your plans and what makes your homestead your own: schedule a free consultation.