Equity Loan Information

Why is it that many loan companies wont provide home equity loans on property that are used for agriculture?

One that comes to mind is quicken loans. Any information would be appriciated, thanks. The thing is, my home is included in my land that I use for cattle grazing.

Public Comments

1. This is an easy one, I've run into this too. Federal foreclosure laws are WAY different for residential than for agricultural land. If you default on a residential loan, and they foreclose, the redemption period is 3 months, then they can take the house and evict you. For agricultural properties the redemption period is a year. So you can stop making your payments this month, and basically get to live in it totally free from now until January, 2009. That's why they won't loan on it, a lot of people have taken advantage of that loophole. It's because the farm properties are considered income producing, so they can't take away your livelihood.. 10 points, please! :)
2. Home equity loans are for residential properties. Agricultural zoning would require either a farm loan or a commercial loan.
3. Traditional lenders do not like to lend on Ag property. Thankfully there are many government loans you can get at very low interest. Especially if it is to increase your cattle farm. Here is a site that details some loans http://www.usda.gov/wps/
4. I can't speak for other lenders, but I can tell you why Quicken Loans can't provide your loan. We don't do any loans for income-generating properties, regardless of whether they are agricultural. We only do residences, not businesses of any type. Since your farm is also your business that produces income, we cannot accomdate your loans. I hope this answers your question.