According to the GovLoans.gov Web site, the U.S. Department of Agriculture's Farm Service Agency (FSA) makes farm ownership loans to farmers and ranchers who cannot obtain a loan from a bank and to beginning farmers. Loans can be used to purchase a farm or ranch; construct buildings or make other real estate improvements; promote soil and water conservation; and pay loan closing costs. Both "guaranteed" and "direct" loans are available though the Farm Service Agency.
Here are the requirements: To be eligible for a farm ownership loan from the Farm Service Agency, you must:
- Be a U.S. citizen or permanent resident
- Not be delinquent on a Federal debt
- Not have caused a loss to the Government by having a previous FSA debt forgiven
- Not have a poor history of repaying debts
- Not have any controlled substances convictions
- Own and operate a "family-sized" farm when the loan is closed
- Not have any outstanding judgments against you
- Be unable to obtain credit elsewhere.
- Applicants must have enough money to repay the loan and enough collateral to fully secure it.
The maximum direct loan is $300,000, and the largest guaranteed loan is $1,112,000.
You asked about qualifications. The acreage of the property matters, but as implied above the applicant or applicants themselves must meet certain requirements to qualify for a USDA direct or guaranteed loan.
I hope this information helps you Find. Learn & Save.
Best,
Bill
