An equestrian property is real estate with land and facilities specifically designed for housing and caring for horses. Equestrian properties range from small acreages for a few horses to large ranches and centers for breeding, training, or competition. 

Common features include:

• Acreage that may include multiple tax parcels and agricultural zoning.
• Outbuildings such as stables and barns.
• Riding facilities include trails, indoor or outdoor arenas, and paddocks.
• Residences for owners, renters, guests, or staff.

The zoning, size, and features of an equestrian property can affect which mortgage options are available. Before you apply for a mortgage, it's important to consider the different lending options for equestrian properties. 

Below are the residential and agricultural lending options for equine properties. 

Conventional loans adhere to Fannie Mae or Freddie Mac underwriting standards. These government-sponsored entities allow mortgage lenders to finance properties with agricultural zoning when such zoning is typical for the area, the property is primarily residential in use, and the zoning/use does not negatively impact the value or marketability of the property. 

Government-backed loans are insured or guaranteed by the Federal Housing Administration (FHA), the U.S. Department of Veterans Affairs (VA), and the U.S. Department of Agriculture (USDA). These federal agencies also permit residential properties with agricultural zoning. 

Jumbo loans are mortgages that exceed conventional conforming loan limits. Many have conservative guidelines for properties with non-residential zoning, significant acreage, or agricultural improvements. If the property has significant agricultural improvements or generates income, it may not qualify for these common mortgages. In these cases, consider the following alternative financing options: 

Hobby farm loans are intended for properties with significant land, equestrian features, and potential income sources such as hay leases or horse boarding. These loans suit individuals who do not rely on farming as their primary income and plan to use the property mainly for personal or hobby purposes. If the property has more extensive equestrian or agricultural features than a typical hobby farm, an agricultural loan may be more appropriate.

Agricultural loans can be used to purchase or refinance equestrian properties, farms, ranches, orchards, vineyards, wineries, nurseries, and bare land. Available options depend on land value, property improvements, loan amount, and borrower qualifications. Agricultural loans offer fixed, variable, and adjustable rates, as well as lines of credit. Repayment schedules can be monthly, semi-annual, or annual. 

Take a quick "10-minute Trail Ride Financing Chat" with one of our knowledgeable agricultural loan officers. This relaxed conversation can help you discover the best financing for your goals and your property's unique needs. To get started simply fill out the form below or contact us directly.