What is a Florida hobby farm loan?
A hobby farm loan caters to those who dream of embracing a more rural lifestyle while maintaining their primary source of income outside the farming realm. This unique financing option enables you to purchase or refinance your very own Florida farm property and enjoy agricultural pursuits on a smaller scale, such as raising livestock for personal use or cultivating crops in limited quantities. For example, you may be able to have a few dozen cattle but not hundreds or house a handful of show ponies, or garden to sell vegetables at a farm stand, as long as your main source of income was through some other means. Florida hobby farm loans distinguish themselves from conventional mortgages by addressing specific requirements necessary when acquiring land intended for mixed residential and recreational purposes.
These versatile financial products accommodate properties spanning 20 up to 200 acres, provided that around 30% of the total value stems from the dwelling itself.
While these non-traditional hobby farm mortgage loans have some similarities with their mainstream counterparts, such as needing credit scores of at least 680 and a down payment of 20%, it is important to look closely at the different eligibility criteria prior to beginning the journey toward owning a lovely retreat far away from city life.
Why are these Florida Hobby Farm loans different?
A hobby farm loan differs from other Florida mortgages and loans in several significant ways. Firstly, it primarily targets properties where the land comprises over 30% of the total property value, which goes beyond conventional loan guidelines. This flexibility grants borrowers greater opportunities to acquire rural or semi-rural lands with a less restrictive evaluation process.
Another unique aspect is its focus on financing hobby farms rather than commercial ones. This means that while you may generate some revenue through agricultural activities like selling products or raising livestock, these earnings should not be your primary income source. Additionally, there are specific acreage limits for qualifying properties in this mortgage category, ranging between 20 and 200 acres, which cater specifically to hobby farm enthusiasts who don’t intend to engage in large-scale farming operations.
Unlike traditional lending options, a hobby farm loan mandates at least a solid credit score of 680. This is an increase in the mid-to-high-600s, otherwise required for other loans. Furthermore, providing at least a sizable deposit of generally about one-fifth of the principal cost is also necessary. This is referred to as having ‘skin’ within base investment policy terms.
Procuring experienced appraisers might pose certain challenges due to the diverse nature of comparing and evaluating smaller estates versus more extensive spread real estate assets.
Specialists are needed to accurately assess the value of the assets. Provisions must be made to ensure that predetermined sufficient security covenants are met and sustained throughout the duration of the commitment. Any deviations from the legal, contractual obligations of the arrangement are not allowed.
This supports the homeownership goals and fulfills the dreams and aspirations of the individual or group beneficiaries, indeed a noteworthy distinction setting it apart from other alternative offerings presented in the marketplace.
How hobby farm home mortgage loans can help farmers?
There can be many definitions for a hobby farm home loan or hobby farm mortgage loan. In a nutshell, a hobby farm is a small-scale farm that is primarily used for pleasure rather than that of a business venture. The owner of a hobby farm will typically have a main source of income. The revenue is usually from an off-farm job, retirement income, a pension, or even a trust fund. Regardless of income source, the idea is that the farm does not need to make money, it can be those who use it as a hobby, hence the term, “Hobby farm”.
So if you do not have a great quarter or “session” it can disappointment, rather than a financial loss or business loss.
At times, some hobby farmers will not have the money to invest in their new farming ventures, or they might have little capital or operating budget. Unlike homesteaders, hobby farmers are not typically motivated by having the ultimate goal of being self-sufficient.
Some farmers are content to continue their day-to-day jobs and only farm on the weekends. Additionally, there are farmers who invest their retirement income to invest in farm animals they would like to keep on their farms. Farms can add value to your home, so retain that value there could be a minimal upkeep plan if needed.
There can also be overlap with homesteaders when it comes to hobby farming, but its a pretty broad scope if you look at it as a whole. There are also hobby farmers who choose to maintain their farms with a part-time job so they can spend the majority of their time farming. Farmers can also keep aside a small budget for farm implement investments, and other investments in animals and infrastructure. It all depends on the immediate goals and focuses of the farmer and what they want to achieve in the short and long term. Our hobby farm home and mortgage loans are created to help farmers achieve their goals and keep them heading in the direction they see fit.
There are times when hobby farmers are not too far from homesteaders, and the choice to run a hobby farm can be great because hobby farms have wiggle room due to the fact there is more wiggle room when its comes to the rules and what constitutes as a farm or not.
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Florida Vacant Residential Land Loan Lenders
Full List of Florida Farms
Farm Address (Physical) City County Florida
Swallowtail Farm 17603 NW 276th Lane Alachua Alachua Florida
31 Produce 18672 State Road 31 Alva Lee Florida
Irv’s Sweetberry Farm 6448 Plymouth Sorrento Road Apopka Orange Florida
ALL Blueberries 3151 SW Gator Trail Arcadia Desoto Florida
Down South Blues Corporation 1291 NE Hansel Avenue Arcadia Desoto Florida
Florida Sweet Peaches 7347 NE Cubitis Avenue Arcadia Desoto Florida
Grove Ladder Farm 5690 SE Stallings Terrace Arcadia Desoto Florida
Joshua Citrus 4135 SE County Road 760 Arcadia Desoto Florida
Ryder Berries 2490 SW Gator Trail Arcadia Desoto Florida
Fussell’s Meats 2039 SE Carlstrom Field Road Arcadia Desoto Florida
Eggsotics Fruits & Veggies 10411 SW 138th Street Archer Alachua Florida
Atlantic Beach Urban Farms 1175 Atlantic Beach Boulevard Atlantic Beach Duval Florida
Bilbrey Family Farms 6488 Bilbrey Nursery Road Auburndale Polk Florida
Luna Berry Farms 3132 Kville Avenue Auburndale Polk Florida
McCracken Farms 2945 Harnage Road Avon Park Highlands Florida
Baker U‐Pick Blueberries 5949 Dairy Road Baker Okaloosa Florida
Shockley Springs Nursery 7097 Old River Road Baker Okaloosa Florida
Hilltop Peaches 7455 Cox Road Bartow Polk Florida
James Farm 1894 EF Griffin Road Bartow Polk Florida
Walter Farms 9613 Alturas Babson Park Cutoff Road Bartow Polk Florida
Abshier Blueberry Farms 3960 SE 115th Street Belleview Marion Florida
Circle C Farm 10441 Kentucky Street Bonita Springs Lee Florida
Farmer Mikes U‐Pick 26031 Morton Avenue Bonita Springs Lee Florida
HNH Blueberry Farm 130 Bostwick Park Drive Bostwick Putnam Florida
Center Hill Farm U‐Pick 2949 Center Hill Road Bowling Green Hardee Florida
Alderman Farms 8865 US Highway 441 Boynton Beach Palm Beach Florida
Bedner’s Farm Market 12033 State Road 7 Boynton Beach Palm Beach Florida
Yee Farms 9851 Boynton Beach Boulevard Boynton Beach Palm Beach Florida
Hunsader Farms 5500 County Road 675 Bradenton Manatee Florida
Mixon Fruit Farms 2525 27th Street E Bradenton Manatee Florida
Beasley Farms 10137 Preston Road Brooksville Hernando Florida
JG Ranch 17200 Wiscon Road Brooksville Hernando Florida
Spring Lake Blueberry Farm 25688 Powell Road Brooksville Hernando Florida
Margo’s Blueberry Farm 15056 Eckerley Drive Brooksville Hern
