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Part-Time Farm & Hobby Farm
Mortgage Sources Corp Agricultural Division has loans available to finance your part-time farm property. If you own or are purchasing a part-time or hobby farm we have the product for you. Long-term fixed and adjustable rate products are available. Manufactured housing (doublewide or larger on a permanent foundation) and construction/permanent financing is also available. We offer competitive rates and a variety of loan products to meet your financing needs.
Key Criteria for Eligible Loans
• Single-family, owner-occupied, detached primary residence or second home located on the property
• Loan-to-value up to 90%* with a maximum loan amount of $3.0 million
• Private mortgage insurance required with a loan-to-value greater than 80%
• Typical contributory value of the dwelling should represent a minimum of 30% of the appraised value
• No acreage limitation
• Income from the property may be used to qualify
• Non-contiguous properties are eligible
• Property must have agricultural potential and borrower must have intent to do something ag in nature
*90% LTV requires 25% PMI coverage; credit scores of 680 and maximum loan amount of $650,000
Customer Qualifications
• Two years established employment and/or stable income
• Acceptable 24-month credit history with a minimum credit score of 620; 660 for cash-out refinances
• Minimum net worth of $50,000
• Monthly Housing Expense to Gross Income ratio of 30% or less
• Monthly Debt to Gross Income ratio of 40% or less
• Minimum cash reserves equal to two month’s PITI
• Flexibility in the above ratios with compensating factors such as excellent credit, substantial cash reserves or low loan-to-value
Products
• Fixed rates: 10-year, 15-year, 20-year and 30-year fixed rate loans
• Adjustable rates: 1-year, 3/1, 5/1, and 7/1adjustable rate with 5-year to 30-year term
• Adjustable rates: 10/1 and 15/1 adjustable rate with 15-year and 30-year term
