{"id":393,"date":"2017-09-22T08:00:05","date_gmt":"2017-09-22T08:00:05","guid":{"rendered":"http:\/\/agricultureloan.com\/?p=393"},"modified":"2023-02-15T12:16:37","modified_gmt":"2023-02-15T12:16:37","slug":"getting-to-know-usdas-farm-ownership-loans","status":"publish","type":"post","link":"https:\/\/agricultureloan.com\/getting-to-know-usdas-farm-ownership-loans\/","title":{"rendered":"Getting to Know USDA\u2019s Farm Ownership Loans"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Although the farming business has shrunk in popularity in the 21st century, with majority of the population pursuing more \u201cmodern\u201d careers in urban areas, it remains and will definitely remain in the background of every civilizational success.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Today, farm and ranch families constitute only 2 percent of the total population in the US. Yet, their contribution to the economy cannot be undermined. $133.1 billion worth of agricultural produce in the country were exported globally in 2015. Agricultural income make up more than 5 percent of the country\u2019s GDP. And one US farm alone feeds 168 persons on a yearly basis.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Recognizing their contribution to the overall economic health of the country, the federal government continues to create incentives and opportunities to help American ranchers and farmers continue their efforts, even encouraging new entrepreneurs to join the mix and experience the rewarding work that is unique to working closely with nature.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Your key to farm ownership<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">One of such opportunity honors beginner ranchers and farmers or those individuals who want to \n<a href=\"http:\/\/agricultureloan.com\/a-primer-to-getting-financing-for-your-small-farm\/\">start a farming business<\/a> even without prior operation experience.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Backed by the US Department of Agriculture, the Farm Service Agency offers what is called the Direct Farm Ownership Loan. This program has <\/span><span style=\"font-weight: 400;\">no current or previous farm ownership requirements and offers 100 percent financing.<\/span><\/p>\n<p>\n<a href=\"http:\/\/trking10.com\/?f5c=j%2Fokrc9%2BMqAHAvTArBO1Uw%3D%3D&s1=&ts=content&utm_source=Content%20-%20agricultureloan&utm_medium=Body%20Text%20Link\" class=\"cta-button-link\"><span class=\"\">Get matched with a lender today!<\/span><\/a><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s a quick run-through of everything you need to know about the program:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For what purposes can I use the Direct Farm Ownership Loan?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can use the loan proceeds to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">purchase a farm or a ranch<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">expand current farm or ranch size<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">make a down payment on a farm or ranch<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">buy easements<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">build or improve existing farm or ranch buildings and improve farm operations<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">promote the conservation and protection of soil and water resources<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">pay for the closing costs of a loan<\/span><\/li>\n<\/ul>\n<p><b>Are there different types of Direct Farm Ownership Loans?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">There are, namely: a) Regular or Joint Financing and b) Down Payment Loan<\/span><\/p>\n<p><span style=\"text-decoration: underline;\"><span style=\"font-weight: 400;\">Regular or Joint Financing<\/span><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">also called participation loan<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">finances up to 50 percent of the property\u2019s purchase price. A state program, the lender, or the seller of the farm or ranch is the one to provide the balance of the loan funds with or without an FSA guarantee<\/span><\/li>\n<\/ul>\n<p><span style=\"text-decoration: underline;\"><span style=\"font-weight: 400;\">Down Payment Loan<\/span><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">exclusively available to beginning farmers or ranchers and\/or minority women applicants<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">does not provide 100 percent financing and require borrowers to shell out 5 percent of the farm or ranch\u2019s purchase price. Applicants must not own more than 30 percent of the average size of the farm at the time of application<\/span><\/li>\n<\/ul>\n<p><b>What is the maximum loan amount of the program?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">For the Joint Financing or Participation Farm Ownership loan, the maximum loan amount (MLA) is $300,000. For the Down Payment loan option, the MLA won\u2019t exceed 45 percent of whichever is the lesser of:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">the purchase price<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">the farm or ranch\u2019s appraised value<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">$667,000 which is subject to the Direct Farm Ownership dollar limit of $300,000<\/span><\/li>\n<\/ul>\n<p><b>How much interest is charged on the loan?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The rates are calculated and posted every first of the month. The rate followed is whichever is lower in effect at the time of closing or approval.<\/span><\/p>\n<p><b>How long is the repayment period of the loan?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">For the Joint Financing Loan, the maximum allowed years of payment is 40 years while for <\/span><span style=\"font-weight: 400;\">Down Payment loan, the repayment period is 20 years.<\/span><\/p>\n<p><b>How about credit scores?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The FSA does not use credit scores.<\/span><\/p>\n<p>\n<a href=\"http:\/\/trking10.com\/?f5c=j%2Fokrc9%2BMqAHAvTArBO1Uw%3D%3D&s1=&ts=content&utm_source=Content%20-%20agricultureloan&utm_medium=CTA%20Button%20Link&utm_content=Orange\" class=\"button-orange\"><span class=\"\">Get matched with a lender today!<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Although the farming business has shrunk in popularity in the 21st century, with majority of the population pursuing more \u201cmodern\u201d careers in urban areas, it remains&#8230;&nbsp;<a class=\"moretag\" href=\"https:\/\/agricultureloan.com\/getting-to-know-usdas-farm-ownership-loans\/\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":395,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[104,21,105,17,82,43],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.8 - 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