Are you interested in starting your own farm or ranching operation? If so, you’re probably looking for ways to make the process more manageable from a financial perspective. As you may already know, running a farm is not cheap. The good news is that there are a variety of farm loans that can help make the process more affordable.
For example, did you know that there’s an FSA farm loan that can cover the down payment on a farm? It’s called the direct farm ownership loan program, and it’s helped countless aspiring farmers afford the property of their dreams.
This article will highlight everything you need to know about the Direct Farm Ownership Loan and how you can qualify.
What Is the Purpose of the FSA Direct Farm Ownership Loan?
A direct farm ownership loan can be acquired and used for a variety of purposes, including:
- Making the down payment on a farm.
- Buying a farm or ranch.
- Enlarging or making renovations to an existing farm or ranch.
- Implementing new technologies or practices aimed at water and/or soil conservation.
- Covering the closing costs of a farm loan.
Direct farm ownership loans, in other words, can be useful at any stage of the property purchase or maintenance process. They can be particularly helpful, however, to first-time farmers who need to cover the down payment on a new farm.
How to Qualify for a Direct Farm Ownership Loan
In order to be able to receive a direct farm ownership loan, you must first meet the following criteria:
- Must not have a criminal record of cultivating, trafficking, or possessing controlled substances.
- Must be able to demonstrate a healthy credit history.
- Must be a legal citizen of the United States.
- Must not have a history of debt forgiveness from the FSA.
- Must be able to demonstrate basic farm managerial expertise and experience.
For a full outline of how to qualify for a direct farm ownership loan, please visit the FSA’s website.
Submit Your Application for a Farm Loan Today!
At MSF Agriculture, we make it easy for beginning farmers to navigate the complexities of the loan application process. Are you ready to apply for a farm loan that will help you to cover your down payment? If so, our expert lenders are standing by and ready to help. Please contact our office to learn more about the Direct Farm Ownership Loan or to submit your application today!