Help with USDA Farm Loan

6 Replies

Has anyone ever used the USDA programs to help with a farm/raw land purchase. I'm interested in the 45% guarantee program, as well as a few others. 

Reach out to @Drew Walls

He is a lender with a lot of experience in that particular type of loan program. He should be able to help you.

@Derek E. what questions do you have about this loan type?  And what other loan types do you have questions on?

Originally posted by @Andrew Postell :

@Derek E. what questions do you have about this loan type?  And what other loan types do you have questions on?

#1. What is the max DTI for the USDA Farm Loans? Beginning Farmer/Rancher & Farm Ownership Loans.

#2. I'm not sure which of these are best for me and/or easier to get.

#3. Is this a hard loan to get approved for?

@Derek E.

1.  According to the USDA handbook the maximum ratio is 41%.  I would consider a Farm/Ranch loan something different.  Sorry, I don't know much about those types of loans.

2.  The "best" loan type would certainly depend on what you are using it for.  So if you are buying a house, that you plan on living in, on land in a rural area...that would likely qualify for a USDA loan.  However, there are income limits to those loans based on the area you are buying in.  

3.  I would recommend going to a smaller to mid-sized bank for these loan types.  The very large "retail" banks will be harder to use.  

Hope this helps.  Thanks! 

My experience with USDA Farm Loans are they can help keep lending costs down but come at the cost of lots of timely and unnecessary paperwork. If you are ok with that it might work out for you. Personally I prefer to keep the government out of my finances as much as possible.
Originally posted by @Andrew Postell :

@Derek E.

1.  According to the USDA handbook the maximum ratio is 41%.  I would consider a Farm/Ranch loan something different.  Sorry, I don't know much about those types of loans.

2.  The "best" loan type would certainly depend on what you are using it for.  So if you are buying a house, that you plan on living in, on land in a rural area...that would likely qualify for a USDA loan.  However, there are income limits to those loans based on the area you are buying in.  

3.  I would recommend going to a smaller to mid-sized bank for these loan types.  The very large "retail" banks will be harder to use.  

Hope this helps.  Thanks! 

Thanks for the time, but I already knew all of those things about the USDA Direct and Guarantee Loans, which is what I'm pretty sure you are referring to.

I am wanting info on the Farm Loans I mentioned. As I understand it, these can be used to purchase raw land that is to be used for agricultural purposes. 

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