Is farm income allowed with a FHA refinance transaction?
Answer Hi Joseph, FHA guidelines prohibit loans on income producing property. So, if you are trying to refinance a property which is also a working farm, FHA is not the loan type for you. You may want to look at your area Farm Credit Services/similar type of lender or a local, independent bank for a mortgage refinance of your farm. Having said that, farm income is allowed if the land that you farm is in no way connected to the property being refinanced but is simply your job/business. For example: I have done a loan for borrowers who rented land for farming. However, the property they were purchasing was a primary residence in town that was unrelated and not attached to the land being farmed. Further, we had to demonstrate that the land being farmed did not have a home included on that land, to demonstrate that the home being purchased was in fact a primary residence. Once we established those facts, the rental income was allowable under FHA guidelines. However, the income had to be de
