Farms can be profitable but you earn every penny. A lot of people don't know this but if you buy a home with more than ten acres you cannot get a conventional mortgage and pay 1-2 points higher in interest. So if you own a 250 acre farm worth a million bucks and want to borrow 150k to improve things you have to go to farm credit or somewhere else and pay a higher rate even though you are only borrowing 15% of your equity. Because you are self employed you need to file three years of taxes including all of your business taxes. (but you can go to a chevy dealer and buy you and your wife matching silverados with no money down and no payments for 90 days....)Meanwhile someone who works as a school janitor can get a zero down subsidized loan for 100% of the cost including some of the closing costs. This is by design to encourage you to give up and sell out to a bigger entity.
Farms can be profitable but you earn every penny. A lot of people don't know this but if you buy a home with more than ten acres you cannot get a conventional mortgage and pay 1-2 points higher in interest. So if you own a 250 acre farm worth a million bucks and want to borrow 150k to improve things you have to go to farm credit or somewhere else and pay a higher rate even though you are only borrowing 15% of your equity. Because you are self employed you need to file three years of taxes including all of your business taxes. (but you can go to a chevy dealer and buy you and your wife matching silverados with no money down and no payments for 90 days....)Meanwhile someone who works as a school janitor can get a zero down subsidized loan for 100% of the cost including some of the closing costs. This is by design to encourage you to give up and sell out to a bigger entity.
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