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...]