Farm and Ranch Program
We support California agriculture! Loans for agriculture-zoned land (land, buildings, equipment, fixtures) and hobby farms.
Under our unique Hobby Farm Home Loan Program, homebuyers are eligible for up to $1.5 million to finance a purchase of a “Hobby Farm”, which is defined as a primary residence capable of some sustained agricultural production.
Central Coast Lending’s Farm and Ranch Program gives buyers up to $30 million to make farm and ranch purchases (land, buildings, equipment fixtures) to support agricultural production.
The Hobby Farm Home Loan Program is perfect for buyers who want to finance a purchase of a home on land with farm production capacity, while still relying on off-farm means for the majority of their income.
Property qualifications are as follows:
- Single family, detached residence
- Owner occupied, primary residence
- Must be “Hobby Farm” – defined as property with at least five acres of land with agriculture production capability OR used to produce gross annual income of at least $5,000.
The Hobby Farm Home Loan Program is not eligible for financing investment properties, second homes, lot purchases, or townhouses.
Borrowers qualify with a credit score of 700 and a history clean of major negative credit events (bankruptcies, foreclosures, short sales).
General loan qualifications are as follows:
- Minimum credit score of 700
- Must receive 60% or more of their income from off-farm source.
Down payment requirements vary based on the loan amount:
- 20%: $600,000 and less
- 25%: $600,000 to $750,000
- 30%: $750,000 to $1,000,000
- 35%: $1,000,0000 to $1,500,000
To complete the loan, the property must meet several additional requirements, including zoning, environmental, dwelling, and crop-type qualifications.
The Hobby Farm Home Loan Program also offers these nifty options for borrowers:
- Purchase / Refinance Combo: Borrower can pay off existing liens while accessing funds to purchase additional land.
- Cash-Out Refinance: Borrower can cash out the lesser of 25% of the loan amount or $100,000. Proceeds must be used for home improvement, refinance of primary home, or family need.
Central Coast Lending’s Farm and Ranch Program gives buyers financing capacity of up to $30 million to purchase parcels of land to use for agricultural production. Under the program, financing is also available for buildings, fixtures, equipment, and facilities (dairies, feedlots, storage units or processors) that are attached to the land.
Property qualifications are as follows:
- Agriculture-zoned land (capable of producing agricultural commodities or products)
- No minimum or maximum acreage BUT if property is less than five acres, must produce over $5,000 in annual gross sales of agricultural products.
Eligible borrowers must be U.S. citizens or permanent residents with a minimum credit score of 680. Private corporations or partnerships are also eligible, providing members, stockholders, or partners with majority stakes are citizens or lawful permanent residence.
The loan-to-value (LTV) ratio describes the maximum eligible loan relative to the total value of the property. Maximum LTV options for the Farm and Ranch Program include:
- 70%: Land loans up to $5.0 million:
- 60%: Land loans exceeding $5.0 million:
- 65%: Facilities loans (dairies, feedlots, storage units or processors):
The mortgage rate can be structured as either fixed (for a term 7, 10, 15, 20, 25, or 30 years) or adjustable (5-year Adjustable Rate Mortgage, 7/1, 10/1). ARMs offer a fixed mortgage rate for a preset amount of years, before resetting to a sliding rate that adjusts based on a market index.
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About the Loan Programs
As a bank and a broker, we find loan solutions where other lenders cannot.
- Conventional (Fixed, ARMs)
- FHA (203b, 203k, Refi)
- USDA (Section 502)
- VA (VA, VA Streamline)
- Manufactured Homes
- Mobile Homes
- Refinance (Rate and Term, HARP)
- Farm and Ranch
- Second Mortgages (HELOC)
- Jumbo (Primary, Secondary, Investments)
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Central Coast Lending Reach
We offer home loans / mortgages to the Central Coast and the entire state of California, including:
San Luis Obispo County:
Arroyo Grande, Atascadero, Avila Beach, Cambria, Cayucos, Creston, Grover Beach, Los Osos, Morro Bay, Nipomo, Oceano, Paso Robles, Pismo Beach, San Luis Obispo, San Miguel, San Simeon, Santa Margarita, Shandon, Templeton, and surrounding cities.
Santa Barbara County:
Buellton, Carpinteria, Goleta, Guadalupe, Hollister Ranch, Isla Vista, Lompoc, Los Alamos, Los Olivos, Mission Hills, Montecito, Orcutt, Santa Barbara, Santa Maria, Santa Ynez, Solvang, Cayuma, Vandenberg Village, Garey, Summerland, and surrounding cities.
Bakersfield, Delano, Arvin, California City, McFarland, Ridgecrest, Maricopa, Taft, Oildale, Lamont, Rosamond, Rosedale, Greenfield, Shafter Lost Hills, Wasco, Bear Valley Springs, Boron, Frazier Park, Wofford Heights, Weedpatch, and surrounding cities.
Carmel, Del Rey Oaks, Gonzales, Greenfield, King City, Marina, Monterey, Pacific Grove, Salinas, Sand City, Seaside, Soledad, Bradley, Castroville, Chualar, Las Lomas, Lockwood, Moss Landing, Elkhorn, San Ardo, San Lucas, Prunedale, Pajaro, and surrounding cities.
Real Estate Reports
Our quarterly reports on the Central Coast real estate market feature data on sales, pricing, foreclosures, and more.