![]() ![]() The maximum loan amount for a Joint Financing or Participation Farm Ownership loan is $600,000.ĭirect Farm Ownership Down Payment maximum loan amount works differently. The maximum loan amount for a "regular" Direct Farm Ownership loan is $600,000. The most current Census of Agriculture data is used in this calculation. The applicant may exceed the 30 percent after the loan is closed. Down Payment loans require loan applicants to provide a minimum cash down payment of 5 percent of the purchase price of the farm.Īs established by the Beginning Farmer definition, loan applicants interested in the Down Payment loan may not own more than 30 percent of the average size farm at the time of the application. The Down Payment Farm Ownership loan is the only loan program that does not provide 100 percent financing. Beginning farmers do not have to identify themselves as a minority or woman, and minority and women loan applicants do not have to be beginning farmers. ![]() A commercial lender, a State program, or the seller of the farm or ranch being purchased provides the balance of loan funds, with or without an FSA guarantee.Īvailable only to eligible beginning farmers and ranchers and/or minority and women applicants, a Down Payment loan is a special type of Direct Farm Ownership loan program that partially finances the purchase of a family size farm or ranch. FSA lends up to 50 percent of the cost or value of the property being purchased. FSA also offers a Direct Farm Ownership Microloan for smaller financial needs.ĭirect Farm Ownership Joint Financing LoanĪlso known as a participation loan, joint financing allows FSA to provide more farmers and ranchers with access to capital. ![]() There are 3 types of Direct Farm Ownership Loans: "regular," joint financing, and down payment depending upon individual needs.
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