Qualification criteria for farm loans depend on the loan program. The U.S. government subsidizes a number of farm loans under the Farm Service Agency. Whereas some are for new farmers only, others assist currently operating farms.Continue Reading
Although each loan program has specific eligibility criteria, the general criteria for an FSA loan include a stable credit history and an inability to secure sufficient bank financing. The farmer must meet citizenship criteria and intend to operate a family farm as either an owner or a tenant. The borrower must have experience or training in managing a farm. Individuals who have federal debt delinquencies or defaults, or have defaulted on a previous FSA loan, are disqualified.
Beginning farmer and rancher loans are for individuals who have not owned a farm within the previous 10 years. Qualifying farms are no more than 30 percent of the size of the average U.S. farm.
Beginning and disadvantaged farmers can get down payment assistance if they can put down at least 5 percent out of pocket. In addition to the other criteria, the farmer must pay for at least 65 percent of the appraised value or purchase price with other financing. Non-beginning farmers must meet the program's current definition of a socially disadvantaged individual.
The emergency loan program issues direct loans to farmers in federally declared disaster or quarantine areas. To qualify for the production loss emergency loan, the farm must've lost at least 30 percent of its production.Learn more about Credit & Lending
Changes to the FHA loan guidelines pertain to prepayment penalties, property flipping, new competition for low down payment loans and the program HAWK, explains The Simple Dollar. It also relates to student loans and employment verification, states Inman. FHA case numbers assigned after June 14, 2015 are subject to the new loan requirements.Full Answer >
The Champion Mortgage Company offers reverse mortgage products to borrowers who meet its loan qualification criteria. In addition to the monthly payments of a traditional reverse mortgage, the company offers a line of credit to customers who want to withdraw and deposit funds, according to the Champion Mortgage website.Full Answer >
Bank of Montreal mortgage rates are calculated using a number of criteria, including the type of loan, the length of the loan and any market conditions. The credit history and financial information of the borrower can also play a role in calculating BMO mortgage rates.Full Answer >
Websites such as LendingUniverse allow users to get quotes from thousands of lenders with just one loan application and provide the most convenient way to compare lot loans. Prospective borrowers can also compare lot loans at the websites of lenders such as Frost Bank, Zions Bank and Union Bank & Trust.Full Answer >