What is a Hobby Farm? A Beginners Guide
For some, rural living isn’t just about location. It’s about being able to take advantage of the different opportunities country life has to offer, from raising animals to outdoor recreation.
Whatever draws you to the country, a hobby farm can be the perfect place to call home.
What is a Hobby Farm?
You might hear hobby farms referred to as lifestyle farms, homesteads or small farms.
No matter the name, hobby farms are generally small-scale agricultural operations used for exploring personal satisfaction, self-sufficiency and enjoying a rural lifestyle more than producing a primary source of income.
Starting a Hobby Farm
Some aspects of country living that might draw potential buyers to hobby farms in the first place, can also block the lending process.
Tillable land, livestock facilities, barns and grain storage can make securing conventional home financing difficult. Compeer Home specializes in rural lending and offers hobby farm loans designed specifically with those unique property characteristics in mind.
First-time homebuyers who are interested in hobby farming are also eligible for Compeer Home's First-Time Homebuyer Program, which allows buyers the option to purchase a home without a down payment or costly private mortgage insurance, making the dream of homeownership achievable.
Find Expert Land Appraisers
One of the most important things to consider when looking to finance your hobby farm is land appraisal. Every hobby farm is unique, and with so many different features to consider, the appraisal process can be a challenge.
The key to hobby farm appraisal is utilizing a land appraiser who has experience and expertise in valuing agricultural property.
With an in-house team of seasoned land appraisers well-versed in rural properties, buyers working with Compeer Home can enjoy a smooth appraisal process for their hobby farms and be sure they have a clear picture of a property’s value.
Get the Most Out of a Hobby Farm
Some buyers might worry making a small profit off their hobby farm might violate the terms of their loan, but just because hobby farms aren’t meant to be the primary source of income doesn’t mean there aren’t opportunities to make money.
We at Compeer Home are familiar with these properties and expect hobby farmers to generate some income, so buyers can enjoy the full extent of their hobby farm with a peace of mind, whether you’re housing livestock, selling produce at a local farmers market or anything else.
Hobby farms are a great option for buyers looking to enjoy more space and experience a bountiful rural lifestyle. Learn more about how Compeer Home can help you start a hobby farm hassle-free today.
To qualify for Compeer Financial’s First-Time Homebuyer Loan Program, the property and applicant(s) must meet eligibility and underwriting requirements as determined by Compeer Financial. Borrower(s) will be responsible for certain loan and closing costs at signing. This is not a commitment to lend or extend credit. Program terms, requirements and conditions are subject to change without notice. Compeer Financial is an Equal Credit Opportunity Lender and Equal Opportunity Provider and Employer. Mortgage Account Errors, Requests for Information, and Credit Reporting Disputes: If you would like to request information concerning your mortgage account, or if you believe there is an error on your mortgage account or that Compeer Financial has furnished information to a credit reporting agency on any of your account(s) that is not accurate, you will need to send a written statement to us describing in detail the information you are requesting or the information you believe is in error or inaccurate along with your name, address, and account number to Compeer Financial, Attn: RLS Servicing, PO Box 4459, Mankato, MN 56002-4459. NMLS #619731
