Farmers can secure loans to buy homes through federal, state, and private programs tailored to agricultural professionals. Key options include USDA Rural Housing loans, which offer low-interest mortgages with minimal down payments for eligible rural buyers, and conventional or FHA loans from banks or mortgage lenders, often requiring credit checks and down payments. State-specific programs, such as the Farm Home Loan Program in Minnesota or the California Farmworker Housing Program, provide additional assistance. Farmers should verify eligibility based on income, property location, and employment status.

The USDA Rural Housing Program is the primary federal initiative, targeting low- and moderate-income buyers in rural areas. As of 2023, USDA data shows over 100,000 loans were issued through its Section 502 Direct Loan program, with average interest rates around 3.125% and down payments as low as 3% for eligible applicants. These loans require farmers to occupy the property as their primary residence and meet income limits, typically capping annual earnings at 115% of the area’s median income. For example, in 2022, USDA reported a 98% loan approval rate for qualified applicants, reflecting the program’s accessibility. Private lenders also offer specialized products, such as the Farm Credit System’s mortgages, which cater to agricultural income cycles and property collateral. However, conventional loans often demand higher credit scores (above 620) and down payments (10–20%), making USDA programs more accessible for farmers with moderate financial profiles. Together, these options address rural housing gaps, with USDA loans covering 90% of home purchase costs in some cases, reducing barriers for agricultural workers to achieve homeownership.