Author Topic: Planning to buy a farm  (Read 1044 times)

gentmach

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Planning to buy a farm
« on: January 09, 2017, 05:32:07 PM »
I'm planning on buying a farm a few years down the road. Problem is I've avoided debt like the plague. I do have bills that are paid each month but I have my doubts about credit worthiness.

Any suggestions? I am considering Lending Club already, I am just unsure if I should do a few small loans first or just get a credit card. There may be other options because I haven't looked into loans before.

The property is 100 acres and I figure 5000 an acre so... 500,000 is in the ball park. (This is a rough estimate since things will be different down the road.

KelStache

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Re: Planning to buy a farm
« Reply #1 on: January 10, 2017, 11:10:24 AM »
I'd say you might as well get a credit card right now - it's free and you should be able to find one with points / cash back.  Pay it off every month (which it doesn't sounds like it will be an issue for you).

Then I'd go talk to my bank and find out what size of mortgage you would qualify for.  You might be surprised, I have friends fresh out of university being approved for $400K homes based solely off their income. Even if this is too low it will at least give you an idea of where you're at. (Note that I don't know much about farm mortgages so you might have to see someone who specializes in these...)

Good luck!

lthenderson

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Re: Planning to buy a farm
« Reply #2 on: January 10, 2017, 04:16:12 PM »
I would visit your local Farm Service Agency (FSA) and apply for one of their direct farm loans for beginning farmers. Everyone I know who didn't inherit land went through them or were very wealthy to start with.

Dicey

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Re: Planning to buy a farm
« Reply #3 on: January 10, 2017, 06:57:36 PM »
I would visit your local Farm Service Agency (FSA) and apply for one of their direct farm loans for beginning farmers. Everyone I know who didn't inherit land went through them or were very wealthy to start with.
This, plus go talk to someone who specializes in Farm Loans. Go spend time with farmers. Woofing could prove insightful as well.