{"id":801,"date":"2019-04-08T15:57:39","date_gmt":"2019-04-08T15:57:39","guid":{"rendered":"http:\/\/agricultureloan.com\/?p=801"},"modified":"2023-01-04T08:56:36","modified_gmt":"2023-01-04T08:56:36","slug":"long-take-get-farm-service-agency-loan","status":"publish","type":"post","link":"https:\/\/agricultureloan.com\/long-take-get-farm-service-agency-loan\/","title":{"rendered":"How Long Does it Take to Get a Farm Service Agency Loan?"},"content":{"rendered":"

If you are looking to start, expand, or purchase an existing farm, you probably need financing. You can find that financing with the FSA – the Farm Service Agency. Before you start, you should know how long it takes to get this type of loan, as it\u2019s not the same process you would go through to purchase a residential home.<\/p>\n

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Do you Need a Guaranteed or Direct Loan?<\/h2>\n

First, you need to determine if you need a \nguaranteed FSA loan or a direct FSA loan<\/a>. The guaranteed FSA loan comes from a lender with FSA approval, much like you would get an FHA or VA loan. You don\u2019t deal with the FSA directly – instead, the lender operates on their behalf.<\/p>\n

If you need a direct loan, it\u2019s because you can\u2019t qualify for a guaranteed loan. The direct loan, as the name suggests, comes directly from the FSA. It has limited power, though. For example, you can only borrow up to $300,000, while the guaranteed loan doesn\u2019t have such a maximum. If you can\u2019t qualify for the guaranteed loan, the direct loan can help you get started.<\/p>\n

Obtaining the Guaranteed Loan<\/h2>\n

The guaranteed loan, as we said above, comes directly from the lender. But the lender must communicate with the FSA to get approval. The lender first gathers the necessary documents from you. This includes a business plan. This gives the lender an idea of how you will achieve your plans for your farm. The lender needs to see that you have the resources, ideas, and support to grow your farm as you intend.<\/p>\n

Once you turn in your \nincome and asset documents<\/a> along with your business plan, the underwriter will let you know what additional documents you need. Once the underwriter feels you have turned everything in and that the documents meet the FSA approval, he\/she will send the package to the FSA for final underwriting. The FSA will review the package and let the lender know within 5 business days if anything is missing. Once the FSA has everything they need, they typically turn the answer around within a week.<\/p>\n

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The FSA will provide the lender with a letter stating the approval of the loan. The lender can then schedule the closing for your farm loan.<\/p>\n

On the chance that the FSA doesn\u2019t approve your guaranteed loan application, you have a few options:<\/p>\n

Ask for reconsideration or a meeting with the FSA loan officer<\/p>\n

Hire a mediator to resolve the issues<\/p>\n

File an appeal with the National Appeals Division of the USDA<\/p>\n

Obtaining the Direct FSA Loan<\/h2>\n

If you apply for the direct FSA loan, you\u2019ll have different requirements. First, you won\u2019t work with a lender – you\u2019ll work directly with the FSA. You can do this by visiting your local office or you can download the forms from the FSA website and complete them at home. There are FSA loan officers available to assist you with the process.<\/p>\n

You will need to complete a variety of forms that let the FSA know:<\/strong><\/p>\n