Posted on: 10th Sep, 2010 06:56 pm
My husband and I are trying to get a home loan for in town. We have about $500,000 worth of crop land in contract-for-deed. It is in our possession. We cannot get a home loan the normal way since we showed a loss on our last income tax report. The home loan would have to be in only my name and I don't make quite enough. Our credit scores are very poor, but on the way up.
My question is... is there any way we could take out an ag loan using our crop land as collateral for a $209,000 house? Or is this impossible?
My question is... is there any way we could take out an ag loan using our crop land as collateral for a $209,000 house? Or is this impossible?
Hi Guest,
You can take out an agricultural loan using the crop land as a collateral. You should let the lender know how you would use the loan proceeds. If the lender agrees to your request, then you can go ahead with the deal. But with a low credit score, you won't be able to qualify for a loan. You'll have to improve your score and then apply for a mortgage.
Thanks
You can take out an agricultural loan using the crop land as a collateral. You should let the lender know how you would use the loan proceeds. If the lender agrees to your request, then you can go ahead with the deal. But with a low credit score, you won't be able to qualify for a loan. You'll have to improve your score and then apply for a mortgage.
Thanks