Misfitmorgan's Journal - That Summer Dust

[babsbag]

I seem to recall that the FHA limit wasn't on the amount of land as it was on the value...the house has to be worth a certain % of the total deal, I guess that is the same with the USDA loan.

Have you tried some of the Ag credit banks?

 

[Baymule]

Call and talk to these, it can't hurt to try.

http://agamerica.net

https://www.lendingtree.com/

http://www.agstar.com/loans/Pages/ag-farm-loans.aspx

https://www.agrilender.com

 

[Bruce]

Can't get a loan to become a farmer because you don't have 3 years of experience in farming because you can't get a loan to become a farmer.

Kind of similar here with the sales tax exemption on farming equipment. How are you supposed to create the income to show that you are farming if you don't have the equipment to do it? And once you do have it so you CAN prove you are making money at farming, well you don't need the tax exemption since you already bought the stuff and paid sales tax on it.

 

[misfitmorgan]

Ours is a guarantee loan, You do have to pay a small annual fee for that, they roll it into the loan, but you also have the option of zero down payment with it.

How many acres was your farm and how long ago was that if you dont mind me asking?

I saw something when i was trying o find USDA info that said no acreage....i assume they mean no vacant land or land without a house for your personal primary residence?

I seem to recall that the FHA limit wasn't on the amount of land as it was on the value...the house has to be worth a certain % of the total deal, I guess that is the same with the USDA loan.

Have you tried some of the Ag credit banks?

I think FHA has a cap on how much you can get per the area, house, and debt to income ratio up to 41% vs 36% for others. The problem i have is i dont know how to figure out the worth of the land exactly. Tillable is worth one amount, wooded is another, river front is another, etc....i also have no idea how to figure out the value of a house itself with the land. My assumption would be the house and the land the buildings are on would be used for the "house" but i'm not sure. We really need an underwriter or loan person on this forum to ask all this stuff too lol. The second bank we tried was a local bank that works with Greenstone but that was for the place we are on now and that was a no because of the trailer.

Call and talk to these, it can't hurt to try.

http://agamerica.net

https://www.lendingtree.com/

http://www.agstar.com/loans/Pages/ag-farm-loans.aspx

https://www.agrilender.com

I did try talking to lending tree and they just beat me around the bush trying to get me to give them my social so they could run my credit which i refused. I have not talked to or heard of those others. Thanks you!!

Can't get a loan to become a farmer because you don't have 3 years of experience in farming because you can't get a loan to become a farmer.

Kind of similar here with the sales tax exemption on farming equipment. How are you supposed to create the income to show that you are farming if you don't have the equipment to do it? And once you do have it so you CAN prove you are making money at farming, well you don't need the tax exemption since you already bought the stuff and paid sales tax on it.

Exactly!!

 

[Bruce]

@Latestarter was, in a past life, a mortgage loan officer. There may have been changes since then but I bet he can answer a lot of your questions about the things that haven't changed and the fact that he recently moved from CO to TX so he's recently analyzed a lot of the current options.

 

[Latestarter]

FHA will back loans for rural property, but there is a limit to the amount of acreage that can be included when determining the value for loan purposes. FHA will only back the value of the first 10 acres of the property, and those first 10 acres must include the home.

https://www.farmloans.com/farm-loans/michigan-farm-loans/

https://www.farmcreditnetwork.com/about/locations

http://agamerica.net/

https://riverbankfinance.com/mortgage-programs/michigan-farm-loans.html

http://www.greenstonefcs.com/Pages/default.aspx

That about does it for me... Hope one of these is a possibility.

 

[misfitmorgan]

Thank you everyone for your help but i think we have decided to wait a couple months and if that place is still up for sale awesome, if not we will find another. We keep trying to push ourselves into things before we are ready and as a result really make things harder on ourselves. So we will stay at the current place and pay their stupid $600/month rent and save our money, pay off a bit of my credit card debt not that i have much really and pay DHs revolving credit line which only has like $400 owed on it. The car payments will be done in 9 months so we are just going to double the payment plus a tad so it is paid off in 4 months. Over that 4 months we should also be able to save approx $10,000 with piglets money, my vacation pay, and our salaries of course. I'm hoping to sell some more hay too but we shall see.

 

[misfitmorgan]

This is the place we were looking at....and dreaming about lol.
https://www.zillow.com/homes/for_sa...9,-83.387518,44.545539,-83.416143_rect/14_zm/

On a side note....or rather a main note

We sold both adult ram mutts, the 4 month old mutt lamb we had, and suffolk lamb, and all 3 goat kids in about a week and a half...so that was great.

The two adult rams went to be studs for a smallish herd. The little mutant lamb has a ewe friend they bought and is going to be the pets of an older lady and her sister. The suffolk lamb is going to be the sire for a nice size mixed sheep herd tat they are trying to get some size on...nice young couple starting out. All 3 now whethered boys are going to be brush hogs on a golf course downstate, they will be let out in the daytime to the "native" areas of the course to trim things down and fertilize.

 

[Latestarter]

I know that's 80 acres, but $173/square foot? That's pretty high! SO maybe this early fall you can offer them 150K and they'll be more ready to deal. I mean that would be tripling their investment in 10 years... Not too shabby considering the economy over the past 10 years!

 

[misfitmorgan]

I know that's 80 acres, but $173/square foot? That's pretty high! SO maybe this early fall you can offer them 150K and they'll be more ready to deal. I mean that would be tripling their investment in 10 years... Not too shabby considering the economy over the past 10 years!

Haha no, sorry. That was the original listing price $189,000 it has since dropped to $139,000 so it is $127/sqft and that doesnt count the upstairs of the house because it isnt finished. That is pretty cheap actually, anything with a lot of acreage has the sqft price high because of the land value. We are hoping to get the place for $120,000 or less but we will see when the time comes if it does.

I am aiming to be ready in 4-5 months but DH isnt so sure of my saving plan lol. He has a history of giving money to his ex's for "savings" and they really just spent it all. So everytime i say hey if you give me X amount a month i can put it in the savings he somehow feels like i am going to rob him or something so digs his heels in. I told him the alternative is he can pay more bills and i will put the money from check in the savings

I did also talk to the realtor about the listing yes they bought the place for 50k but since they bought it. They re-did the entire inside of the house with new drywall, remodeled the kitchen, put in new flooring on the entire first floor, put new interior doors thru the whole place, new light fixtures, added the bead board and the fancy trims, they also put new decking on the first floor deck, put in the two bedrooms and have everything for the bathroom out there and that all comes with the house. They also have about half the stuff needed to do the bathroom in the house which comes with the house and they also put in all the 4 wheeler trails, the bridge, and blinds for hunting. So they have put a fair amount of money into the place.
The appliances also come with the place which i kind of laughed about since it looks like the newest one is the washer lol. We would definately be swapping that dryer out for our dryer since it is newer and would be buying a new dishwasher and swapping that electric stove for our gas one. Probly put our fridge and the electric stove out in the guest house building so we can use it for canning and prep for garden and butcher stuff......i am getting ahead of my self though