Kentucky VA Farm Loan Guidelines

Kentucky VA Farm Loan Guidelines


Farm Loans: Kentucky VA Home Loans Overview

Kentucky VA Home Loans

Can You Buy a Farm in Kentucky With a VA Home Loan?

Yes, in many cases. The VA Home Loan benefit can be used to purchase a farm property in Kentucky when there is a residence on the land and the Veteran will live in that home as a primary residence. VA loans are for residential purposes and cannot be used to buy a business.

Kentucky eligibility rules Appraisal and acreage Farm income qualifying VA vs FHA vs USDA acreage Steps to get started FAQ

Kentucky eligibility rules for “farm” properties

  • There must be a residential dwelling on the land.
  • The Veteran must occupy the home as their primary residence.
  • The loan must be primarily for a residence, not for purchasing a business or commercial operation.
  • Properties that are primarily commercial farms (business-first) may not qualify.

Practical Kentucky example: A home on acreage in areas like Oldham County, Shelby County, Spencer County, Hardin County, or rural Warren County can be workable when comps support residential use and the home is the primary purpose of the purchase.

Appraisal, acreage, and outbuildings in Kentucky

  • VA does not set a maximum number of acres.
  • Acreage typically isn’t an issue if comparable sales in the area sold primarily for residential use.
  • Outbuildings and improvements like barns, sheds, corrals, stables, and pastures may be considered in value as residential-related improvements.
  • The VA valuation must not include livestock, crops, or farm equipment/supplies.

This is why “comps” matter in Kentucky: if the closest comparable sales are residential-with-acreage (not commercial ag sales), underwriting is usually more straightforward. :contentReference[oaicite:1]{index=1}

Using farm income to qualify

If some or all of the income needed to qualify comes from farming operations, the VA requires verification that the Veteran has the ability and experience to operate the farm. :contentReference[oaicite:2]{index=2}

  • Expect documentation similar to self-employment (history, consistency, and ability to continue).
  • We’ll focus on stable, documentable qualifying income—not one-time or speculative income.

VA vs FHA vs USDA acreage comparisons (Kentucky)

The real-world issue usually isn’t a hard acreage cap. It’s whether the property is primarily residential, whether comps support the value, and whether there are income-producing features that make the property look like a business purchase.

Program Does it have a strict acreage limit? What underwriters/appraisers care about Common Kentucky “deal killers”
VA No stated acre limit. Primary residence requirement, residential comps, no value for livestock/crops/equipment; residential-only valuation for farmland portion. Property is primarily a working commercial farm; comps are commercial ag sales; value tied to business assets. :contentReference[oaicite:3]{index=3}
FHA No universal acre cap; must be typical for the area and primarily residential. Residential highest-and-best use, marketability, and appraisal support; avoid properties that function like a commercial operation. Commercial ag use dominates; unique specialty improvements without residential market support.
USDA (Guaranteed) No specific site size/acreage limit, but it must be predominantly residential. Predominantly residential character; the property must not include buildings principally used for income-producing purposes. Income-producing land or facilities used primarily for ag/commercial enterprise; property fails rural eligibility mapping. :contentReference[oaicite:4]{index=4}
Quick Kentucky rule of thumb
Residential-first Comps must fit No business purchase Documentable income Clear occupancy plan

Steps to a VA home loan (including farm properties)

  1. Get your Certificate of Eligibility (COE). Lenders can typically retrieve this electronically.
  2. Get preapproved with a VA-experienced lender and connect with a Realtor.
  3. Choose a home and sign a purchase agreement that includes a VA financing contingency.
  4. Order the VA appraisal and clear final underwriting conditions for closing.

If you’re looking at acreage properties in Kentucky, send the listing early. The earlier we evaluate comps and “residential vs business” risk, the fewer surprises you’ll have later.

FAQ: Kentucky VA farm properties

Can a VA loan be used on a property with barns and stables?

Often, yes, if the property is primarily residential and the improvements contribute to residential market value. The VA valuation cannot include livestock, crops, or farm equipment. :contentReference[oaicite:5]{index=5}

Does VA cap acreage?

No stated acreage limit. The focus is on residential use and comparable sales support. :contentReference[oaicite:6]{index=6}

Can I use farm income to qualify?

Potentially, yes. VA requires documentation and verification of ability/experience as a farm operator when farming income is used to qualify. :contentReference[oaicite:7]{index=7}

What makes a farm property ineligible?

When it’s primarily a business purchase (commercial farm), or value depends on business assets like livestock, crops, or equipment.

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One-page guide

VA Farm Property Eligibility (Kentucky)

Use this checklist before writing an offer on acreage property.

Primary residence required Residential purpose only Acreage not capped
Must-haves
  • Home on the land
  • Veteran occupies as primary residence
  • Property is primarily residential
  • Comparable sales support residential-with-acreage value
What cannot be included in value
  • Livestock
  • Crops
  • Farm equipment or supplies
Often OK (when residential)
  • Barns, sheds, corrals, stables
  • Pastures and typical rural improvements
  • Farm income, if documentable and experience is verified
Common red flags
  • Commercial farm operation is the main purpose
  • Value relies on business assets
  • No good residential comps (only ag/commercial sales)
Joel Lobb, Mortgage Broker FHA, VA, KHC, USDA • NMLS 57916
Alt text suggestion: “Kentucky VA farm property eligibility checklist showing primary residence requirement, what can’t be included in value, and common red flags.”
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Author: Kentucky Mortgage Broker Offering FHA, VA, USDA, Conventional, and KHC Down Payment Assistance Home Loans

Thank you for visiting. I hope you find this website both informative and empowering as you explore your mortgage options. My goal is to help you feel confident in selecting the right home loan for your unique situation. I proudly serve all 120 counties in Kentucky, offering a full range of mortgage loan programs, including: FHA Loans VA Loans USDA Rural Housing Loans Fannie Mae Conventional Loans KHC Down Payment Assistance Programs With over 20 years of lending experience, I’ve had the privilege of helping more than 1,300 Kentucky families achieve their homeownership goals. Whether you're a first-time homebuyer or seeking a second opinion, I’m here to offer honest, no-pressure advice—always free of charge. I am dedicated to: Attending as many closings as possible Providing responsive, personalized service Ensuring quick, efficient, and accurate loan processing Making myself accessible every step of the way I've been consistently recognized as a top mortgage loan officer in Kentucky for VA, FHA, USDA, and KHC programs. I take pride in being thorough, transparent, and attentive with each and every client. Please take a moment to read my reviews below. If you have questions or need guidance, feel free to call or text me directly. Call/text at 502-905-3708. Free Mortgage Pre-Qualifications same day on most applications. Email me at kentuckyloan@gmail.com with your questions I specialize in Kentucky FHA, VA ,USDA, KHC, Conventional and Jumbo mortgage loans. I am based out of Louisville Kentucky. For the first time buyer, we offer Kentucky Housing or KHC loans with down payment assistance. This website is not an government agency, and does not officially represent the HUD, VA, USDA or FHA or any other government agency. NMLS# 57916 http://www.nmlsconsumeraccess.org/ Joel Lobb Senior Loan Officer/p> call/text phone: (502) 905-3708 kentuckyloan@gmail.com Company ID #1738461 EQUAL HOUSING LENDER http://www.mylouisvillekentuckymortgage.com/

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