# USDA loans and grants open in 2018?



## KandCfamilyfarm (Nov 4, 2017)

I have 0 credit but I need money for land and materials so I can expand my current farm. I did have 10 acera but my other family members had bought 5 acars a few years back and now they need money so they are going to sell leaving me with only 5 acres of farm land + a house on 1 acre of that land. I cant find a bank to loan me the money because of my credit. Any bright ideals welcome!


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## Wolf mom (Mar 8, 2005)

Go slow - pay cash. You'll be further ahead in the long run.


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## KandCfamilyfarm (Nov 4, 2017)

Wolf mom said:


> Go slow - pay cash. You'll be further ahead in the long run.


I would like to but if some one else comes in and buys the land I lose all my chicken houses, hay storage, and half my grazing field


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## tiffanysgallery (Jan 17, 2015)

I agree with go slow and pay as you go. 

But some people will use lendingclub.com with no problem. Either they do great borrowing, or they eventually lose their shirt.


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## po boy (Jul 12, 2010)

Have u tried borrowing money on the property you own?


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## Wolf mom (Mar 8, 2005)

So you are saying that you owned 10 acres, sold 5 of it to relatives, spent the money you received for that 5 acres and now are wanting to get more money to buy back the 5 acres you sold but continued to use as yours?

What's wrong with that picture?
Why do you have "no credit"/poor credit?

Have you gone to your relatives and asked them to carry back a loan on their 5 acres?


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## Clem (Apr 12, 2016)

You need to know how much the land in question is appraised for. Then what the asking price is. And how much the part you own is appraised for. With this information, you can probably go to a P2P lending site and make your pitch. It's going to be pretty important to have clear titles all around, too.
No idea what the land you want is actually appraised at(not what you think it's worth) but, for example, if it were to appraise at $10,000 and you offered to put your own land in with the land you're buying and ask for a $10k mortgage on $20k appraised piece of property, you'd be much more likely to get it. As opposed to asking $20k for a $10k appraisal.Rest assured that if you run afoul of the terms, they'll come after you with foreclosure.

P2P lenders may well want to make a reasonable return on their investment, and your offering more than the money's worth as collateral will encourage them to lend to you. However, many P2P lenders are actively looking for someone who is almost guaranteed to default. Especially if the lender can double their investment within a year or so.

There is nobody lending or giving away money just to help you, especially if you have a pattern of late payments, missed payments, of have been foreclosed on.


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## Citified (Jan 21, 2017)

I work in real estate, and in my experience you can get a loan and buy property with little to no money, but there's no bank that will lend to a person with bad credit. Most lenders require a 620 FICO score, some will go as low as 580. If you're looking for a bank loan, I'd consult with a lender to see how best to work on raising your score. Most lenders will help develop a plan for you, in hopes of retaining your business for when you do qualify for a loan.


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## KandCfamilyfarm (Nov 4, 2017)

Wolf mom said:


> So you are saying that you owned 10 acres, sold 5 of it to relatives, spent the money you received for that 5 acres and now are wanting to get more money to buy back the 5 acres you sold but continued to use as yours?
> 
> What's wrong with that picture?
> Why do you have "no credit"/poor credit?
> ...


I originally quitdeeded the 5 acres over to them so they could use it as collateral for the tractor. I have never wanted to have credit so I have always steered clear of credit cards and such. That is how I had my own land debt free by the time I in my mid 20's. Now I need credit and dont have it. I went talk to some loan ppl and they said i'm a ghost.


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## po boy (Jul 12, 2010)

KandCfamilyfarm said:


> *I originally quitdeeded the 5 acres over to them so they could use it as collateral for the tractor.* I have never wanted to have credit so I have always steered clear of credit cards and such. That is how I had my own land debt free by the time I in my mid 20's. Now I need credit and dont have it. I went talk to some loan ppl and they said i'm a ghost.


Simple, have the quit claim deed it back to u


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## Wolf mom (Mar 8, 2005)

yup - have the quit claim deed deeded back to you. AND begin to establish credit. We are a credit based society. Just because you have a couple credit cards, doesn't mean that you have to run them up - Charge a couple things each month and pay it off monthly... no interest charged and you'll get out of one of the situations you are in. I'm still shaking my head that you _gave_ someone land without the stipulation they give it back...I sure hope you got the tractor....And no, that is not how you got your land debt free while in your 20's. You are confusing credit cards with debt and your work ethic.


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## KandCfamilyfarm (Nov 4, 2017)

po boy said:


> Simple, have the quit claim deed it back to u


I don't think they are going to do that. they have $60,000 tied up in it now plus the tractor. I have been talking to them and trying to work this out. I offered to let them quit deed it back and stay in the house but they wont go for it. At this point I think my best bet is to sell my half also or buy the wooded lot on the other side of me for $20,000. Before I didn't know they had gotten themselves so far in debt. dad lost his 401 a few months back and never said a thing. From the sounds of it they are just going to sell and move back to florida with other family. the whole thing is fubared!


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## KandCfamilyfarm (Nov 4, 2017)

Wolf mom said:


> yup - have the quit claim deed deeded back to you. AND begin to establish credit. We are a credit based society. Just because you have a couple credit cards, doesn't mean that you have to run them up - Charge a couple things each month and pay it off monthly... no interest charged and you'll get out of one of the situations you are in. I'm still shaking my head that you _gave_ someone land without the stipulation they give it back...I sure hope you got the tractor....And no, that is not how you got your land debt free while in your 20's. You are confusing credit cards with debt and your work ethic.


the only thing I can say is I do dumb stuff for family. I trusted them to do me right!


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## secondhandacres (Nov 6, 2017)

You need to find a lender that knows how to do manual underwriting. Churchill mortgage is the one that Dave Ramsey endorse’s. Just about all mortgage companies have dumbed down the lending process today to using only a fico score. If you have a zero or undetermined credit score you qualify for a manual underwritten mortgage. The lender will require you have a steady job for the last two years and you have a strong down payment. 

Now, don’t know what this whole tractor deal was you made but if I was going to go into a mortgage for some land I quitclaim deed to some family years ago I would want some sort of compensation for that. That tractor is now mine or it’s going to be sold to reduce the amount I half to borrow to buy my own land back. Also I would caution you on making deals like this with family. Deals like this cause families to stop talking to each other for 50 plus years, it’s just not worth it. Love you family enough to tell them no when they ask for money or land in your case.


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## Mickie3 (Aug 28, 2010)

secondhandacres said:


> You need to find a lender that knows how to do manual underwriting. Churchill mortgage is the one that Dave Ramsey endorse’s. Just about all mortgage companies have dumbed down the lending process today to using only a fico score. If you have a zero or undetermined credit score you qualify for a manual underwritten mortgage. The lender will require you have a steady job for the last two years and you have a strong down payment.



Dave is compensated for routing folks to that web site, they are an *ADVERTISER* on his show. All his endorsements are paid ads. How do you think he is paying his bills? (Read the yelp reviews on that company before you do any business there (or anywhere, for that matter.) Dave may love them, but others have mixed opinions.)

Also, there is nothing magic about a "manual" mortgage evaluation, the requirements are going to be the same. OP would most likely be better off to go where they now bank and talk to them re: mortgage loan. If the banks and regular mortgage houses turn them down, sub-prime is the route it will be, or no loan at all.


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## AmericanStand (Jul 29, 2014)

Go into your local USDA Farm Service Agency (FSA) and ask them what they have. They should have a small booklet that explains several of their programs.


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## sammyd (Mar 11, 2007)

Have your business plan ready and a list of all your assets. Be prepared to put the assets against your loan and have a lien on them.
Get your application in early, often the money will run out before June. I had to apply in a neighboring county when I was looking to get a loan to buy an organic herd.


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## Forcast (Apr 15, 2014)

KandCfamilyfarm said:


> the only thing I can say is I do dumb stuff for family. I trusted them to do me right!


Happens to the best of us.


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