Several of the agents we work with currently have listings for horse farms in North Carolina.  Financing these properties can offer unique challenges.

Our daughter rides, and so we understand the unique challenges of finding the right “home” (barn).

When you’re financing a farm, the first thing we need to know is if this is going to be income producing property. If it is – meaning you are going to lease stalls, have trainers, organize lessons, or stud, then it’s a whole different conversation from where I’m going with this post. (Call us, 919-649-5058 and we’ll get specific details. If we can’t help you – we’ll set you in the right direction.)

If you’re purchasing a farm, chances are it’s in a rural setting that might qualify for a USDA home loan. These are 100% loans, BUT (there’s always a but) there are income restrictions. If you are a family of 4 (with 2 children under 18) in Johnston County, NC the maximum income allowance is $91,850. USDA does consider child care allowances, and part time income, bonuses, overtime – so if you are considering a USDA home loan, and your household income is more than $52,000 contact us before you make an offer so we can double check and make sure you qualify for this loan program.

Also, if there’s a BARN on the property – USDA just decided they are going to change the amount they are going to loan on that property – even if you are NOT going to use the property as Income Producing.

VA also offers 100% loans to veterans. There are no property “location” restrictions, and there are no maximum income restrictions – you just have to be a qualifying veteran or surviving spouse. The maximum Veteran Home Loan that is a 100% loan is $417,000 and the qualifying debt ratio is 41%… meaning they don’t want more than 41% of your total GROSS income going towards expenses, including child care, utilities, house payment and consumer debt (like cars, boats, trailers, credit cards). [Read more...]