![]() The purpose of a hobby farm is to explore hobbies and small-scale farming for enjoyment. Can I make money from my hobby farm?ĭepending on your level of dedication, you can make some income off your hobby farm, but it likely won’t fully support you. We’re throwing a lot your way, so let’s take a pause and cover some frequently asked questions we hear as hobby farm lenders. If you meet our short list of requirements and have questions about what our program entails, let us know. Our hobby farm mortgage loan is designed to flexibly support farmers in any way we can. Have shed homes, barndominium with typical living quarters, log homes, or multiple homes on your property.Have a horse facility with indoor/outdoor arena with no limitation on horse stables.Dwelling value only requires to be 25% of value (lower allowed on a case-by-case basis).Land value can exceed 30% of appraised value.Primary homes or secondary homes capability.Consolidate land and construction loans into a permanent mortgage loan.Purchase, rate/term, and cash out refinances to pay off:.Have a home with up to 160 acres (more allowed on a case-by-case basis).Explore loans up to $2 million with Schedule F (Farm) income allowed.Own multiple parcels of land and parcels within reasonable proximity.House up to 50 head of livestock on the land.With a hobby farm mortgage through United Ag Lending, you can cash in on the following benefits: If you don’t meet our minimum requirements, though, we’re happy to discuss how you can make adjustments and work toward reapplying in the future. Send us a message or give us a call so we can set up a consultation. If you check all the boxes, we want to hear about your hobby farm goals. ◻️ It has a home on it which serves as your primary residence or second home If you finance with us, there will be no surprise requirements that stand in your way. Related: 4 Ways to Start Hobby Farming Hobby farm loan requirements at United Ag Lendingīecause a hobby farm mortgage doesn’t meet the conventional requirements of lenders, many lenders are unable to finance this type of property.Īt United Ag Lending, we’ve made it our mission to create a hobby farm loan program that can meet our farmers where they are. If you’re solely motivated to make a living from your hobby farm, then our hobby farm loan program probably isn’t for you. Is there a possibility for extra income? Absolutely.īut, it depends on what your goals are and how you play your cards. Hobby farms are generally much smaller-scale than commercial farms and don’t provide primary income for borrowers. One important thing to note here is that the value of the land can be higher than the value of the home. Regardless of how much the farmer chooses to invest in their farm, the farm must have a home on it.Īlso, the loan for a hobby farm covers the land and the home. A hobby farmer can focus on as much or as little as they want. The sole purpose of a hobby farm is for a farmer to be able to focus on a type of farming or hobby they want for enjoyment. There doesn’t have to be a residence on the farm, but there can be.Ī hobby farm is not usually financially motivated. If you want to start a farm to produce goods and sell them-whether it’s milk, livestock, or crops-that is a commercial farm. ![]() Hobby farming can help you feel more connected to your communityĪs you probably already know, a commercial farm has a sole purpose of making money.You have the ability sell your produce for a little extra cash.They allow you to save money at the grocery store (if you grow crops).You can make your farm completely unique to you you have total freedom to choose what you want to cultivate.You can explore all kinds of agricultural related hobbies.Hobby farms are much less land/space to upkeep as opposed to more traditional farms.Related: What is hobby farming? What are some perks of hobby farming? It’s exactly what it sounds like-a farm devoted to exploring your hobbies. What is a hobby farm?Ī hobby farm is a small-scale farm without the sole purpose of making an income. If you don’t make your living from your farm full time but still have the passion for farming, there is another type of program we have many options for: hobby farms.Īt United Ag Lending, our hobby farm mortgage is for those interested in having a farm for enjoyment or for part-time work that they live on at least some of the time.
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