Need another approach to get a small family farm :(

I would suggest that you join a credit union. They have made it through this mess well and they take care of their own.
Good luck.

 

Quote:good idea..CU are usually a little more forgiving,

 

I am not sure where you are located, but try getting your loan locally. Last year we purchased our farm with less than perfect but good credit standing. We got turned down be cause there we no comparables in the immediate area, but when we went through a local bank that knew the area, we were approved and gott our comps from over 300 miles away.
Personally, I think Lending Tree and alike are a waste of time, because they do not know the area in which you are trying to purchase, all they know is what is in their areas. Try local. Good Luck.

 

Don't give up!! The credit market is just tight right now. There ARE banks/CU's out there wanting to make loans to credit-worthy borrowers. As long as your loan to income ratio is good...you'll find someone!

 

Do you know what your credit score is? Do you know whats on your credit report?

If you dont know either of these (or whats on your spouse's (assume you're married)) then you need to do these things first and foremost. Nothing like going in "blind" to homeownership or any type of loan deal.

here's another problem: the economy. Lenders (banks and/or credit unions) want somewhere around 30% down or in liquid assests to be able to ensure you can afford the house/farm given so many out there are going into foreclosure. My SIL is in the same situation right now and she's single, no kids. Banks want 30% down and will only qualify her for about 3/4 the amount of what she normally would qualify for.

Another tip: Know BEFOREHAND what YOU can afford -not what you QUALIFY FOR. Know upfront what all of your fees/payments are going to be. Do not go off of what a "pre-qual" letter tells you or your bank/realtor. Just because a mortgage says $1300 a month doesnt mean it IS that amount, thats usually just PI, then you must add Taxes, Insurance and usually, Mortgage Insurance to that if you have less then 20% equity into your house. All of that adds up, taking what was a $1300 payment to nearly $2000.00 depending on where you live in the US. Closing costs are astronomical and usually cannot be rolled in, then you have your points and org. fees on top of that. You can ask your seller to pay a part of closing costs, but by law, they cannot pay ALL of your closing costs, only a certain amount, then you must pay the rest. (unless you are VA, then you can roll them in). Inspection, surveys, title fee, assessment, etc...all are on you usually and paid up front and not at closing - as well as Good Faith Money.

Dont be house poor - you will need to make fixes to your house, emergencies come around and quite often. Repairs happen. Roofs leak, water heaters break....appliances go out.

Do your homework before you go in and in doing so, you'll be much better equipped to handle the situation. NEVER go into anything but a locked fixed interest rate - ever.

 

I am starting my own small "farm"/ "ranch" also. I live on and acre and a third. I am not able to qualify for a loan either. Here's some advice from my state (Alaska). Get a business license as an agricultural whatever you're main business line is (eggs, meat birds, rabbit production, plant production, etc.) I am starting from the very bottom. I have rabbits, chickens, and two miniature dairy goats. I'm technically considered a ranch. I haven't gotten a loan for any of it. I'll tell you that one of the main cash producing things you can have on your farm is good egg producing chickens, they make the most compared to the cost of raising them. They are really cheap to raise, too! I've noticed that by starting little, I've been able to adjust to the changes of having my own ranch and it hasn't been a huge burden on my finances in the process!
Good luck!

 

try churchhill mortgage Dave Ramsey recomends them to his callers and i here that they are very good too. hope this helps!