How Do I Secure A Loan For My Horse Property?

For many potential farm or equestrian real estate owners, the prospect of acquiring a property is a daunting one – loans aren’t easy to get, and the process is a long and complicated one. However, rest assured, you can do it – and is here to help. Here are some things to keep in mind when trying to secure a loan for your horse property:

Know Your Credit Score: This is crucial. Make sure you have a full understanding of your personal credit – your credit score, what your income to debt ratio looks like, and your financial history over the past two years. If your score is low, consider waiting a few months and building it back up before looking for a loan – this can save you tens of thousands of dollars in the long run. In general you’ll want to show yourself as having as high an income as possible, so keep that in mind if you tend to take a lot of deductions on your tax returns.

Commercial or Residential: Another thing to keep in mind is what type of loan you’re going to apply for. Even if you’re going to use the property as a business, it may still be better to apply for a residential loan, as commercial loans are harder to qualify for and the interest rates tend to be a few points higher.


Take Your Time: Finally, don’t rush the process. Expect it to take at least several months to a year before you are ready to apply, and use that time wisely – research lenders, take fewer deductions on tax returns to show higher income, and make sure all of your credit is paid off, or at least paid down. Consider opening an account with the bank or lender you’re thinking of getting a loan from. Building the relationship now can help you during the application process. The big lesson here is to go slow and deliberately.

Contact Your Horse Property Experts

If you’ve got more questions about securing a loan or other aspects of horse property management, feel free to reach out to us at our contact page, and don’t forget to return to this blog – we’ll be updating it with useful info on managing your horse property.


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