FSA Beginning Farmer Down Payment Loan Program
FSA loans requiring only 5% down for beginning farmers and socially disadvantaged farmers purchasing their first farms.
About this program
The FSA Down Payment Loan Program is a special loan program for beginning farmers and socially disadvantaged farmers/ranchers purchasing a farm or ranch. It requires only 5% down from the applicant (the lowest down payment of any farm purchase program). FSA finances up to 45% of the purchase price (capped at $300,150 in recent cycles) at a low interest rate (1.5% in recent cycles), with a commercial lender providing the remaining 50% or more. The loan term is up to 20 years.
Eligibility
Beginning farmers (in farming less than 10 years) or socially disadvantaged farmers/ranchers; meet FSA general eligibility; able to provide 5% down payment from non-FSA sources; agree to participate in borrower training.
Requirements
- Beginning farmer or socially disadvantaged farmer status
- 5% down payment from own funds
- Commercial lender partnership for additional 50%+