{"id":631,"date":"2018-08-07T05:11:48","date_gmt":"2018-08-07T05:11:48","guid":{"rendered":"http:\/\/agricultureloan.com\/?p=631"},"modified":"2023-01-28T02:09:19","modified_gmt":"2023-01-28T02:09:19","slug":"guide-fsas-guaranteed-farm-loans","status":"publish","type":"post","link":"https:\/\/agricultureloan.com\/guide-fsas-guaranteed-farm-loans\/","title":{"rendered":"Guide to FSA’s Guaranteed Farm Loans"},"content":{"rendered":"

If you don\u2019t qualify for financing for a farm the traditional way, you may be eligible for the FSA guaranteed farm loan program. The guaranteed program helps lenders provide funding to \u2018risky\u2019 borrowers that don\u2019t qualify for financing any other way. The \nFSA<\/a> guarantees up to 95% of the funds for the lender. If you were to default, the lender would receive the funds from the FSA, putting the lender at very little risk.<\/p>\n

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How it Works<\/h2>\n

You apply for the FSA guaranteed farm loan through your lender of choice. The lender must be an approved FSA lender. There are \ndifferent levels of FSA lenders<\/a>, if you are up to the task, you can find out the level a lender is approved for as it can affect the speed of which your loan gets approved. You want a Preferred FSA lender as they have the most pull with the FSA and have the most experience with their loans.<\/p>\n

You can secure financing of up to $1,399,000 for your farm. You apply for the loan with the lender, just like you would for any other loan. After you complete your application and send in your income documentation, the lender underwrites the loan. Once the bank is satisfied with your documentation and approves the loan, they send it on to the USDA for final approval. This is where the preferred lender comes in handy as their loans are the first to be processed by the USDA\/FSA.<\/p>\n

The Types of Loans Available<\/h2>\n

You can apply for several types of loans from the FSA. The most common is the farm ownership loan or the loan that helps you buy the farm. You can use this program if you are a first-time farm buyer or if you are a subsequent farm buyer. You can also apply for loans to help with \noperating your farm<\/a> or for emergency funds, which help if you faced any type of natural disaster that wiped your farm out, leaving you to start from scratch.<\/p>\n

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How to Get Approved<\/h2>\n

The requirements to qualify for the FSA guaranteed loan program are fairly simple:<\/p>\n