I forgot to mention owner financing. Cant hurt to ask the seller if he will take paper and a down payment. Or do a Life Estate where the owner can live there until death. There are more ways to skina cat.
FSA got back to me. We can get loan guarantees up to 95% which would grease the skids at the bank. They also have great equipment loans for 2.5% 40 year term. The catch is you need to be a farm manager, family farm member who has worked the farm. One of my clients is getting a grant from them for setting up a rotational grazing fence system plus a streambank stabilization/trout habitat. The govt is flush with cash taken from people who earned it. May as well see what you can get back out of them.
Will using the land for Agro-tourism be considered “farming” for USDA or PA conservation grants purposes? Who receives the grant money, the land owner or the operator? Can a farm have dual operators?
I'm looking at different financing options and some lenders mention that the land can't be income producing I.e. can't be farmed/rented, be in a government program, PYO berries deal. Can you let me know what they're getting at with this?
go to an ag lender like AgChoice. What they are getting at , I think, is that they are lending for a home not a business, so they can sell your loan - probably Fanny Mae guidelines. Farm credit doesnt care about that.
What do you think of RR tracks along the property line, or utility easements. A big powerline in particular? I’m looking at a place that has both of these on edges. Wondering if it’s going to help me access or just be an invitation for trespassers.
powerlines often get a lot of atv traffic. But, they can also be used for side-access to your hunting spots strategically placed. They can also be a place that gets hunted hard if public land and will keep deer from going that way.
Another option if you have enough equity in your house is to refinance your house and use that equity for at least the down payment and maybe even more. A plus to this option is home mortgage interest is tax deductible.
Nice video. I can put down more than that and have a near perfect credit score and could only secure 5% with Farm Credit. Those rates are going to keep skyrocketing. My biggest problem is that I can't find someone who wants to sell that 100 acres. I've written a lot of letters the past year.
Thats a good way to go about it but get a relationship going with a land specialist Realtor. Rates and prices are going up and inventory is low. The only thing on the market is overpriced junk. Hopefully, we can get some good ground on the market in spring