Aug 11 2017

Disabled Veterans Loans #va #loans #mn


VA Rural Home Loan

The Veterans Administration guarantees/insures farm loans that allow for Veterans to purchase a primary home or refinance their current home in a rural, suburban or urban environment. There is no limit on acreage as long as the property is typical of the area. The highest and best use should be for residential purposes. Tillable ground, limited farm animals and small farming is allowed. Non-commercial outbuildings are allowed. Working commercial farms are not allowed. Farm Loan Center provides the lending options available for Veteran loan farm financing to support the growing need for financing in Rural America.

VA loan features:

1. No down payment – 100% Financing

2. Competitive low interest rates

3. Seller is allowed to pay all closing costs

4. VA funding fee applies (Note: **Funding fee is waived with VA service connected disability)

5. Loan amounts up to $1,094,625 in qualified counties across America

6. Credit scores of 640+

7. Higher limit on debt ratios

**Disabled Veterans with a VA related disability of 10% or more are waived of the funding fee charged to non-disabled Veterans. Surviving spouses of Veterans who died in-service or from a service-connected disability also qualify for the exemption.

Rural Home Loan

A Rural property is a primary residence which may or may not include acreage and is located in a rural area or in a town having a population of 2,500 or less. Only minimal agricultural activity is permitted. Generally, little or no income is derived from the property and as in value of the farm-type outbuildings must not exceed 20% of the appraised value. Family farm animals such as horses and 4-H Project animals and barns are allowed to be on the property.

Minimum loan amount is $100,000

Maximum loan amount is $417,000

Must be able to make a minimum down payment of 5% on a purchase

Refinance to 95% of appraised value

Cash out to 80% of appraised value

Primary residence only

Income must be verified from pay stubs and/or tax returns

No stated income documentation

Minimum credit scores of 640

Hobby Farm/Part Time Farm Loan

Hobby Farm Loans are designed for people who wish to finance a home on a property where they can produce some income from agricultural activity such as crops, livestock, hay, alfalfa, etc. Minimum $500 agricultural income can contribute to your total income for the purpose of qualifying for the loan; it cannot be your primary source of income.

Minimum loan amount is $100,000, maximum loan amount is $3,000,000

Loans to 80% of the purchase price with no mortgage insurance

Refinance or cash out to 80% of appraised value

Cash out to 75% of appraised value, 65% on manufactured homes

Maximum 36% debt-to-income ratio – dwelling must be 25% of overall value

Primary residence or second home

Income must be verified from pay stubs and/or tax returns

No stated income documentation

Credit Scores over 660

Bare Land and Rural Site Loan

Rural land site loan is designed for people who wish to finance an unimproved or improved property on which they intend to build a home in the future. Limited agricultural activity may occur on the property, but no intensive farming.

Up to 75% LTV for rural land site acreages, generally 10 to 160 acres

Minimum credit score of 620 with no late payments in last 2 years

Borrower will state intent to build a single family personal residence on property

Full doc-income must be verified from pay stubs and/or tax returns

Minimum loan amount is $100,000

No cash out

25 year fixed rate and adjustable rate programs

No prepayment penalty

Property cannot be in city limits unless city population is under 2,500

No commercial or real estate development projects allowed

Purchase or refinance allowed

No cash back

Closing costs can come from any source

USDA loans are available in areas where the population is below 20,000. Towns close to large metropolitan areas do not qualify. Maximum income varies by geographic area and is based on 115% of the HUD median income. Contact us to find out if you qualify!

FHA Loan for the Purchase of Rural Property

Low down payments up to 97%

Low closing costs

Easy credit qualifying

Property cannot exceed 20 acres

Value of dwelling must be 50% of appraised value

For more information on Veteran farm loans, a rural home loan or any other financing solution, please do not hesitate to contact us .


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