If you are in need of money to buy a farm, you may apply for a loan with the FSA. The FSA Direct Farm loans provide funds directly from the FSA. They offer flexible underwriting requirements and flexible terms. Understanding how to complete the FSA application can help you get through the process with ease.<\/p>\n
\nLooking for Current Mortgage Interest Rates? Click Here.<\/a><\/p>\n The first step is to figure out why you need the loan. FSA loans are only for specific uses. Does your reason fall under any of the following?<\/p>\n Farm loans cannot be used for personal use or to pay for any non-farm related business.<\/p>\n Once you know you need the loan for an acceptable FSA reason, you\u2019ll need to complete the proper \nFSA forms<\/a>.<\/p>\n You must complete each of these forms to start the farm application process.<\/p>\n \nClick to See the Latest Mortgage Rates.<\/a><\/p>\n The application is how the FSA gets the information they need about you. Next, you must provide them with a variety of documents to prove the information that you provided.<\/p>\n You\u2019ll start with a written explanation of your farm business. This lets the FSA know what you do or plan to do with your farm. You must then provide written documentation of the experience and\/or training to that you have to run the farm business as you just explained. The FSA wants to see that you have at least one year of experience running, managing, or operating a farm. They also want to see your production history over the last five years. If you haven\u2019t been farming for five years, you can provide the production history for as long as you\u2019ve been a farmer.<\/p>\n Next, you\u2019ll need to provide proof of your income and assets for as much as five years. The FSA wants to see that you have the income and assets necessary to start and run a farm. They will ask for your tax records as well as bank statements to verify this information. If you have any leases on any equipment or land that could affect your farm ownership\/operation, you\u2019ll need to provide a copy of those as well.<\/p>\n Finally, you must provide proof that you don\u2019t qualify for any other type of financing. Some farmers have to provide the proof with a rejection lender from other lenders. Sometimes the FSA doesn\u2019t require this, though, depending on your credit\/income situation.<\/p>\n Once you complete the required paperwork and have the proper documentation, it\u2019s time to call the FSA and make your appointment. First, you\u2019ll need to find your local FSA office and then you can make an appointment to go in and officially apply for the loan.<\/p>\n The FSA will then process your application. The FSA is good about keeping you in the loop, sending your written confirmation of where you are in the process. They let you know when they receive the application, when it is reviewed, and of course, the decision made. If the FSA cannot provide you with a loan, you will receive the reasons they cannot write the loan so that you can fix the issue and try again in the future.<\/p>\nDetermine Your Reason for the Loan<\/h2>\n
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Completing FSA Forms<\/h2>\n
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Verifying Your Information<\/h2>\n
Making Your Appointment<\/h2>\n