| T O P I C R E V I E W |
| farmmilkmama |
Posted - May 30 2011 : 07:12:08 AM
I know I haven't been around lately. We were supposed to be closing on our new place May 31st. It fell through, permanently, last Friday. We were trying for a rural housing loan (USDA) and at the last minute they said no to the house because it had a pole shed on it and they figured that made it an "income producing property". We tried to push the house through FHA but FHA said no because they won't approve us for a loan until October of this year (nice work researching there, Mortgage Man...GRR!!!!) because we have a foreclosure in our past and aren't eligible for a loan through them until then. But the more I research FHA, they have just as many requirements that make me think something "farmish" isn't going to pass through them either. Seems they evaluate on a case by case situation, and if the property is deemed "income producing", they won't go for it either.
How does one buy a farm-type place? I've heard its a total headache. We don't want something huge. Maybe 10 acres. We're not looking to buy a giant operation with 120 acres. We're not looking to plant crop land, just a large garden and have some animals. Does anyone have any advice about this? Has anyone run into issues buying their farmish kind of property? Thanks in advance. :)
--* FarmMilkMama *--
Be yourself.
Everyone else is already taken.
-Oscar Wilde
www.farmfoodmama.blogspot.com |
| 3 L A T E S T R E P L I E S (Newest First) |
| farmmilkmama |
Posted - Jun 01 2011 : 7:46:38 PM
Angela, thanks for the information. I will keep it in mind. Who knew things were so complicated??
Emily, that's terrible! How very frustrating!! They don't make it very easy to get a loan these days. You can have everything fine with credit and down payment and everything else...and then something ridiculous comes up with the property (that can be totally remedied - in your case, removed!) and then things fall through. GRRRR!
--* FarmMilkMama *--
Be yourself.
Everyone else is already taken.
-Oscar Wilde
www.farmfoodmama.blogspot.com |
| alterationsbyemily |
Posted - Jun 01 2011 : 12:34:40 PM
I had the same problem, the piece of land we wanted to buy had a single wide trailer on it that was 20 years old. Even though it was not even habitable and the current owner was taking it with them, we could not get the house. It was really frustrating to me and my family
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Farmgirl #2951
Currently renting-farmgirl wannabe |
| natesgirl |
Posted - May 30 2011 : 07:50:50 AM
There is a website called 'The Land Man Online Real Estate'. He deals in only larger parcels of land. It could possibly be a resource for you. If he sells farm-type property, chances are he knows who loans for them.
Also, 'Farm-loans.com' is a place to start. You may have to take the loan as a farm business at first due to the type of land you're lookin at.
It's difficult, but doable. My dad is goin through the same thing right now. Some banks will loan to you if you sign a paper statin you want to use the property as a personal homestead only and not a business. You can always remortgage after you own the place if you decide you want use the place for income.
Remember that detailed records and every reciept for every item used can show limited profit and be used to prove 'hobby over income' and then properly taxed and keep you out of dutch on a no-income-clause. Wink! Wink! No one has to know that the milk cow was actually for milk consumption and all the feedin and care and fencin cost was not completely for the purpose of bein able to make and enjoy your own milk soaps that you sold a few of at the local farmers market. (I've been a few rounds with some funky clauses myself!)
Farmgirl Sister #1438
God - Gardening - Family - Is anything else important? |
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