If you’re thinking about buying a farm in Lake City, you probably already know that you’ll need to come up with a down payment – and that’s true whether you’re buying a farm with a house or farmland without other structures on it.
Here’s what you need to know.
How Much of a Down Payment Do You Need to Buy a Farm in Lake City?
Though each lender has its own requirements, you may be able to buy a farm for sale in Lake City with as little as 5 percent down. The Farm Service Agency, which falls under the U.S. Department of Agriculture, backs farm loans in certain situations – and one of the most common of these types of loans is the Direct Farm Ownership Down Payment Loan.
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What is the Direct Farm Ownership Down Payment Loan?
The Direct Farm Ownership Down Payment Loan is only available to eligible new farmers and ranchers, as well as minority and women applicants. These loans are specially designed to help you get started with as little as 5 percent down. (You must have at least that amount to put down; these loans don’t provide 100 percent financing.)
That means if you’re interested in buying a $500,000 farm, you’ll have to come up with $25,000 of your own money. Check out the table below for the minimum down payment amounts for various farmland.
| Buying a farm that costs… | Requires this down payment: |
| $200,000 | $10,000 |
| $250,000 | $12,500 |
| $300,000 | $15,000 |
| $350,000 | $17,500 |
| $400,000 | $20,000 |
| $425,000 | $21,250 |
| $450,000 | $22,500 |
| $475,000 | $23,750 |
| $500,000 | $25,000 |
| $525,000 | $26,250 |
| $550,000 | $27,500 |
| $575,000 | $28,750 |
| $600,000 | $30,000 |
Are You Buying a Home or Land for Sale in Lake City?
If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.
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