{"id":820,"date":"2020-05-06T06:59:51","date_gmt":"2020-05-06T06:59:51","guid":{"rendered":"http:\/\/agricultureloan.com\/?p=820"},"modified":"2023-01-04T09:36:07","modified_gmt":"2023-01-04T09:36:07","slug":"fsa-direct-loans-security-collateral-requirements","status":"publish","type":"post","link":"https:\/\/agricultureloan.com\/fsa-direct-loans-security-collateral-requirements\/","title":{"rendered":"FSA Direct Loans: Security and Collateral Requirements"},"content":{"rendered":"
If you want to buy or expand a farm and cannot secure financing from a traditional lender, you may be eligible for an FSA Direct Loan. The FSA Direct Loan provides funds to purchase or expand a farm up to a loan amount of $300,000. The funds come directly from the USDA and not a lender.<\/p>\n
\nLooking for Current Mortgage Interest Rates? Click Here.<\/a><\/p>\n What are the requirements for the \nFSA Direct Loan<\/a>? In particular, what security or collateral do you need?<\/p>\n Keep reading to find out what you need.<\/p>\n The USDA takes a large risk giving you funds to purchase or expand your farm. In exchange for that risk, they ask that you provide collateral up to 150% of the value of the loan. At the very least, you\u2019ll need security that is equal to 100% of the loan amount.<\/p>\n The typical collateral for an FSA Direct Loan is the farmland itself, equipment, livestock, or crops. The FSA bases the value of the collateral on the fair market value according to a recent appraisal. All security used for the FSA Direct Loan must also have insurance to protect it.<\/p>\n \nClick to See the Latest Mortgage Rates.<\/a><\/p>\n As an FSA borrower, you agree to some of the following responsibilities to care for the security or collateral on the FSA Direct Loan:<\/p>\n Aside from the necessary security or collateral for the FSA Direct Loan, you must also meet the following requirements:<\/p>\n If you meet these requirements, you may be eligible for an FSA Direct Loan. Keep in mind that this type of financing is meant to be temporary. The FSA wants to give you the \u2018boost\u2019 you need to become a farm owner, but they also want you to take responsibility to get yourself into a financial position where you can qualify for financing outside of the FSA programs eventually.<\/p>\n \nClick Here to Get Matched With a Lender.<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" If you want to buy or expand a farm and cannot secure financing from a traditional lender, you may be eligible for an FSA Direct Loan…. Read More<\/a><\/p>\n","protected":false},"author":12,"featured_media":829,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10,11],"tags":[],"yoast_head":"\nThe Required Security and Collateral<\/h2>\n
Responsibility for the Security and Collateral<\/h2>\n
\n
Qualifying for the FSA Direct Loan<\/h2>\n
\n