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Hobby Farms
"Life on a farm is a school of patience; you can’t hurry the crops or make an ox in two days." - Henri Alain Liogier
Imagine waking up to the gentle sounds of chickens and cows, with the morning sun lighting up your green pastures. A hobby farm is a peaceful escape from urban life, where you can grow your own food, raise animals, and enjoy the rewards of self-sufficiency. It offers a chance to reconnect with nature, learn new skills, and embrace a slower, more meaningful pace. Whether it's harvesting your first crop, sharing farm chores with loved ones, or simply enjoying the beauty of rural living, a hobby farm is a delightful blend of tranquility and purpose.

by Melissa Holt

What is a Hobby Farm?
A Hobby Farm is a primary or secondary residence and has the potential to earn additional income, but it is not your primary source of income.
Basic Requirements:
  • Single Family, Primary and Secondary Residences Only
  • Minimum Credit Score of 680
  • Acreage Allowances from 5-160 acres (over 160 considered on case-by-case basis)
  • Must be Rural Area
  • Must Have Reasonable Potential to Produce $500 Annually
  • Livestock Allowance is 50 Head or Less
  • One Additional Home Allowed On Property, Two Home are Case-by-Case
  • Up to 5% Seller Credit Allowed on Purchases
Eligible Property Types
  • Properties with Large Acreage
  • Properties with income producing (schedule F income)
  • Equestrian homes, homes that have leased farmland
  • Properties with up to 3 total dwellings on one parcel (if primary is stick built) will allow multiple parcels
  • Off Grid Properties
  • Ag Exempt Properties
  • Barndominums
  • Vineyard Homes even with tasting rooms
  • Jumbo Properties on acreage (Large Estates on acreage)
  • Log cabins on acreage
  • Bare Land loans for either recreational/ag potential from 500k-100 million
  • can have up to 30% improvements on it if not bare land
  • Full Time Farm Loans with multiple parcels up to 100 million
  • (almost all farm types allowed) IE Dairy, Poultry, Orchards etc..
Ineligible Property Types: Full time farming/business property, manufactured/mobile homes, berm homes and dome homes.
Typical Property Characteristics
  • Homes with acreage up to 160 acres, larger may be considered
  • Outbuildings such as barns, silos, stables, etc.
  • Livestock - cattle, goats, horses, etc.
  • Pastureland or tillable acreage
  • Schedule F Income
  • Up to 3 dwelling on the property
  • Horse properties, vineyards and ranch properties
What is the Down Payment Requirement?
This is a great question! There is a lot of flexibility with hobby farms! The minimum down payment is 20% for the main loan, but you can go as 5% down out of pocket with secondary financing. Let's say the seller is willing to offer you 15% of the purchase price as a loan… that might be allowed! In this case, you would only come up with 5% of your own money down!
LTV = Loan to Value (that is the primary loan amount divided by the value/purchase price)
CLTV = The combination of the your primary loan plus any secondary financing divided by the value/purchase price.
How Do I Get Started?
  • Submit Required Documentation
  • ID's
  • Proof of Down Payment
  • Paystubs Covering 30 Days
  • 2 Years W-2's
  • 2 Years Personal Tax Returns
HAVE QUESTIONS?
Do you have questions or a scenario you wish to discuss?
No problem! You can call, text or email me anytime!
425-753-4247
About Me:
My name is Melissa Holt and I've been helping clients with home financing since 2001! I was a bank and retail lender for over 22 years and I now run my own broker business so I can help even more families! If you wish to learn about benefits of working with a broker, click HERE.
When I'm not working, I'm running between soccer practices and games, camping, visiting with friends or working on home projects. I love music and dancing! My passion is people and puzzles are my game
Melissa J. Holt; NMLS #331083; [email protected]
Empire Home Loans, Inc. NMLS #1839243
PHONE: (425) 753-4247
Empire Home Loans, Inc., NMLS ID#1839243, CA DRE# 02086593, CFL License #60DBO-95315, AZ Lic: MB-1012019. Refer to www.nmlsconsumeraccess.org to see additional licensing information. The corporate office address is 4401 Hazel Ave., Ste. 135, Fair Oaks, CA 95628; www.empirehomeloans.com. This communication is for informational purposes only. This is not a commitment to lend. All programs are subject to change or cancellation at any time and without notice. Empire Home Loans, Inc. supports equal housing opportunity.estimate is provided for illustrative and informational purposes only based on the initial basic loan scenario provided. This is not a loan approval or commitment to lend. Rates effective as of 10/23/2024 and are subject to change. Annual Percentage Rate (APR) is an estimate based on criteria provided. Until you lock your rate, APR and terms are subject to change or may not be available at commitment or closing.