Author Box
Articles Categories
All Categories
Articles Resources

How A Farm Loan And A Rural Loan Differ

May 30, 2012 | Comments: 0 | Views: 162

These types of loans have differences between them that are crucial to understand, yet so many people looking for loans start out on the wrong path because they don't understand that these two types of loan aren't the same.

A rural loan is made to those who want to purchase property in the rural United States. Rural areas are places in the US that are far away from highly populated towns and cities and the government wants to encourage growth in more rural areas. These loans are typically offered through a government agency like the USDA.

If you decide to go with the USDA for your rural loan, however, be advised that they have strict regulations on what areas qualify as a rural home loans area. The agency has broken down the United States into qualified rural areas where these loans can be used generally the area has to have a population of less than 25,000 and the agency keeps track of this areas population. This is to ensure areas have proper status. You should check at local rural development offices for lists of lenders that offer USDA rural loans.

A Farm Loan is very different type of loan that is designed only for farms and farm equipment. You would get a farm loan most likely through a private lender. Some examples of farm loans are operating loans. Operating loans cover things like crop needs, labor and family living expenses, livestock purchases or other farm-related needs.

There are also equipment loans that cover things such as Grain Bins and facilities, farm and home improvements, farm trucks and vehicles, new buildings of all types, farm improvements (like tiling), livestock facilities and breeding livestock. Farm Loans also cover real estate purchases and do not have the same sorts of restrictions as a rural loan has such as population and location restrictions.

A lender can talk with you further about your specific requirements for a loan, or you can look online for information defining specifics for your situation. You should look online first and play around with a mortgage calculator to get a general idea about what payments will be like for someone with your credit profile and cash for down payment. Also, look around at different interest rates there are many ways to pay back farm loans and rural loans terms and conditions vary greatly on length of time to pay back a loan and the interest a bank will charge you to borrow the money.

If you understand the difference between a rural loan and a farm loan before you seek your options, you will have an easier time getting the financing you need for your new home and/or equipment.

Copyright (c) 2012 Farm Credit Services of Mid-America

D. Lynn is a Financial Services Executive. He blogs for Farm Credit Services of Mid-America (FCS) a cooperative serving farmers in IN, OH, KY and TN. Providing loans for all farm and rural living purposes. Also, financial services including crop insurance and leases. Find out more about farm financing.

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Farm Loans


Land Financing


Farm Financing


Land Loans


Ag Credit


Loans For Land


Rental Farms

Teenage rebellion is easier to tolerate in book or film form. Take a look back at some of the most well known and loved "coming of age" stories set in boarding schools.

By: Harvey McEwan l Arts & Entertainment l July 10, 2012 lViews: 445

An important thing you have to consider before working out is having a pair of great training shoes. You cannot immediately undergo any physical training wearing inappropriate footwear. If you do so,

By: Steve Hill l Recreation & Sports l July 10, 2012 lViews: 349

Granite is one natural stone that is used for several purposes from dimension stone to countertops to sculptures. The use of granite for building the temples and monuments was initiated millions

By: Steve L Patterson l Arts & Entertainment l July 10, 2012 lViews: 297

Up to 65,000 H-1B visas for new employment may be issued each fiscal year (FY) for professional workers, including medical providers. In general, a person who already has an H-1B and applies for

By: Ann Badmus l Arts & Entertainment l July 10, 2012 lViews: 308

Beside coin shooting, gold detecting or the many other things you can do with your metal detector. There is a large group of people who take their metal detector out looking for old stuff. Not just

By: Candy L Lindsey l Recreation & Sports l July 07, 2012 lViews: 293

Many people want to be writers and you may be one of them. In order to make your dream occupation a reality, you need to have a plan. You also need to work on this plan constantly. These tips from a

By: Harriet Hodgson l Writing & Speaking l July 06, 2012 lViews: 439

Instant prescreen was developed as a response to growing ineffectiveness of traditional batch prescreen. Traditional batch prescreen presents generic offers to a wide array of customers that, at the

By: Kelty Wallacel Finance l June 06, 2012 lViews: 150

Due to the condition of the economy, many people are opting for investments that are safer than the stock market. Here is some more information on these investment types.

By: Jennifer Noblesl Finance l June 05, 2012 lViews: 149

My search to find out what really happened in the U.S. in 2008. What really caused the global recession, mass foreclosures and millions in lost jobs?

By: Kevin Alvarezl Finance l June 03, 2012 lViews: 126

Reward credit cards allow you to bring in points while you spend, with benefits such as gifts, free flights, cash back and other rewards - just by using your credit card! The goal with any rewards

By: Ray E Ethelll Finance l June 02, 2012 lViews: 154

It is the duty and responsibility of any banker to ascertain the eligibility of a customer during the course of taking a decision to grant him a loan. Of course, the loan may be for a small amount or

By: Gauri Sankarl Finance l June 01, 2012 lViews: 179

Everyone is subconsciously wanting to catch with time that is why they may be more inclined using the quickest as well as easiest ways of performing things. Nevertheless you are wondering if you have

By: Stephanie R Obryanl Finance l June 01, 2012 lViews: 142

Owning a ranch or farmland can be a truly rewarding experience. Imagine rural living, the peace and tranquility, the cleaner air and environment, living closely with your animals. Would you like to

By: Darren D Lynnl Real Estate > Landl May 30, 2012 lViews: 206

Discuss this Article

comments powered by Disqus