Farm Ownership Loans (Direct and Guaranteed)

Farm Ownership Loans will help you purchase or enlarge a farm or ranch, construct a new or improve an existing farm or ranch building, pay closing costs, and pay for soil and water conservation and protection.

FSA provides guaranteed and direct loans. Under a guaranteed loan, a commercial lender makes and services the loan, and FSA guarantees it against loss up to a maximum of 95 percent of loan value. For those not yet meeting the qualifications for a loan guarantee from a commercial lender, FSA also makes direct loans, which are serviced by an FSA Official. FSA has the responsibility of providing credit counseling and supervision to its direct borrowers by making a thorough assessment of the farming operation.

To be eligible for this loan, you must be a U.S. citizen, non-citizen national or legal resident of the United States or U.S. territories. You must be an agricultural producer or family farmer and must have experience in farm business operations in at least three of the 10 years prior to the application submission. You must also meet all of the following:

• Have a satisfactory history of meeting credit obligations, and
• Be unable to obtain credit elsewhere at reasonable rates and terms to meet actual needs, and
• Have legal ability to incur loan obligations, and
• Be the owner-operator of a family farm after loan closing. 

Applicants are automatically not eligible if either of the following apply:

• Are delinquent on a federal debt, or
• Have caused FSA a loss by receiving debt forgiveness (certain exceptions apply).

Eligible applicants may obtain direct loans up to a maximum indebtedness of $300,000. Maximum indebtedness for guaranteed loans is $1,392,000 (amount adjusted annually for inflation). The maximum repayment term is 40 years for both direct and guaranteed farm ownership loans. In general, loan funds may be used to purchase a farm, enlarge an existing farm, construct new farm buildings and/or improve structures, pay closing costs, and promote soil and water conservation and protection.