Rural Hobby Farm Home Loan
The hobby farm loan is for homes on 5 – 160 acres. The home must be the primary residence and approximately 30% of the value must be from the home.
What is it?
A hobby farm loan is a non-conforming conventional loan. Where does the name come from you may ask? Basically, a hobby farm is a small scale farm that is used for pleasure rather than income. That being said, the farm may produce income but it cannot be the owner’s main source of income.
Is it right for me?
The property cannot be a working farm but could produce some income, as long as it isn’t a main source of income. For example, you may be able to have 10 head of cattle but not hundreds, house a handful of show ponies, or garden to sell vegetables at a farm stand, as long as your main source of income was through some other means. With all that said, you don’t have to farm the land to qualify for a hobby farm loan. The property can have as few as 5 acres but up to 160 acres and approximately 30% of the value must be from the home. You must plan to use your home as your primary residence in order to obtain this type of mortgage.
If you are considering purchasing a home in a rural area that doesn’t quite fit this description, you may want to check out the RHS loan.
Why is it different from other mortgages?
While this mortgage does mimic a conventional loan in some ways it does not conform to the requirements of a conventional when it comes to land value v. home value. The hobby farm loan allows you to finance a property where the land makes up more than 30% of the total property value, which is not permitted with a conventional loan. It can be a bit difficult finding appraisers that specialize in hobby farms because hobby farms don’t fall into any sort of typical property that most appraisers deal with– your mortgage banker can help with that.
Being your own boss shouldn’t mean a backbreaking path to homeownership. Self-employed borrowers can relax with Stockton Mortgage’s bank statement program, with alternative documentation options of 12 or 24 months of bank statements.
Our conventional loans can be a fixed rate or adjustable rate mortgage. With a variety of down payment options, the minimum down payment requirement is 3%. There are also options that avoid mortgage insurance.
This loan program helps medical professionals qualify for a home loan, even with student loans and limited savings. Eligible borrowers include currently practicing medical professionals or those who’s employment will start within 90 days of closing.
The Federal Housing Administration (FHA) loan is a great option for borrowers without a large amount in savings.
Fresh Start Loan
Individuals recovering from a credit event should not be without the hope of homeownership. If you’ve had a recent bankruptcy (Chapter 7 or 13), foreclosure, deed-in-lieu, or short sale, ask one of our mortgage bankers about a Fresh Start.
Hobby Farm Home Loan
The Hobby Farm loan is for homes with 5 – 160 acres. Rural areas, non-contiguous parcels permitted. Not eligible for full time Farming operations. This program is good for customers looking for a place to have horses, hunting property, etc.
Home Equity Line of Credit (HELOC)
This alternative to a cash-out refinance allows a borrower to use the equity in their home without refinancing their mortgage.
Investor Cash Flow Loan
With Stockton Mortgage’s Investor Cash Flow Loan, it’s never been easier to break into real estate investing. This program allows you to utilize the future income rental of a property to determine cash flow – meaning that if portfolio growth is a goal, the Cash Flow Loan could make it happen.
Stockton Mortgage offers solutions for people who have an Individual Tax Identification Number (ITIN) who are looking for a mortgage or wish to finance their existing mortgage. With our ITIN Loan Program, we may be able to utilize written verification of employment and bank statement payroll deposits in lieu of paystubs.
A great option for large loan amounts; too large for a conventional loan. Loan amounts up to $3 Million for owner occupied or $2 Million for second home. This program varies by state, please ask your mortgage banker for more information.