By: Lumen Mortgage, specializing in agricultural loans and mortgages for equestrian properties in Oregon and California.
By: Lumen Mortgage, specializing in agricultural loans and mortgages for equestrian properties in Oregon and California.
Equestrian Mortgage is your trusted partner for navigating the best mortgage options for equestrian properties, including hobby farms, equestrian estates, equine farms, and facilities in Oregon and California.
An equestrian property refers to real estate that includes land and facilities specifically designed for the care and housing of horses. Equestrian properties can vary significantly, ranging from small acreages suitable for a few horses to expansive ranches and horse facilities dedicated to breeding, training, or competition.
Common features of equestrian properties include:
- Acreage that may consist of multiple tax parcels and agricultural zoning.
- Outbuildings such as stables and barns.
- Riding facilities like trails, indoor or outdoor arenas, and paddocks.
- Residences for owners, renters, guests, or staff.
The zoning, size, and features of an equestrian property can impact available mortgage options, making it essential to consider various lending choices specifically for equestrian properties before applying for a mortgage.
Here are our residential and agricultural mortgages loan options available for equine properties:
Residential Mortgages for Equestrian Properties:
Conventional loans follow underwriting standards set by Fannie Mae or Freddie Mac. These government-sponsored entities do allow mortgage lenders to finance properties with agricultural zoning, provided that such zoning is typical for the area, the property is primarily used for residential purposes, and the zoning and agricultural use does not adversely affect the property’s value or marketability.
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 loans also allow residential properties with agricultural zoning provided they are primarily residential in nature, and the majority of the value and use is residential not agricultural.
Jumbo loans are mortgages that exceed the conventional conforming loan limits ($832,750.00 in most counties). Many jumbo lenders have conservative guidelines for properties with agricultural zoning, extensive acreage, or agricultural improvements.
If a horse property generates income or has substantial agricultural features, it may not qualify for standard mortgage options. In such cases, you might consider the following equestrian financing solutions:
Hobby farm loans are mortgages for residential properties with agricultural zoning and improvements. These loans allow for equestrian features such as barns, riding arenas, and outbuildings, as well as passive income from hay leases and horse boarding. Hobby farm loans are ideal for individuals who do not depend on farming as their primary source of income and who intend to use the property for personal or recreational purposes. Hobby farm loans work well for equestrian, vineyard, and orchard estates, as well as farm and ranch properties. If an equestrian property has more extensive agricultural value or commercial use, an agricultural loan may be a better option.
Agricultural Mortgages for Equestrian Properties:
Agricultural (ag) loans are mortgages used to purchase or refinance equestrian properties, farms, ranches, orchards, vineyards, wineries, nurseries, and bare land. Unlike residential mortgage loans, ag loans heavily depend on the agricultural value of the real estate. Ag loans are available in fixed-rate, adjustable-rate, and lines-of-credit mortgages, with flexible payment options including monthly, semiannual, or annual payments.
Take a quick "10-minute Trail Ride Financing Chat" with one of our knowledgeable agricultural loan officers. This relaxed conversation can help you find the best loan for your equestrian property, tailored to your goals and the unique features of the horse property you own or want to buy. To get started, fill out the form below or call us at: 503-966-9255
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