Down on the Farm - Reverse Mortgages May Be The Answer

Small farmers in America today experience many ups and downs. Sometimes they have to use their ingenuity to make their farm profitable and to keep operations running smoothly and efficiently.  In today’s economy, many American farmers are finding it difficult to make ends meet because of increases in the cost of supplies and energy.  Many larger farms are forcing small farms to shut down because the smaller farmer cannot compete with profitable farms that have the funds to run things more efficiently and at less cost.  Today small farmers have a viable option that they can use to survive this uncertain economy.  This option is to investigate lenders for reverse farm mortgages.  Farm reverse mortgages will provide these small farmers with the funds necessary to survive without forcing them to sell their farm.

By using a farm reverse mortgage, the farmer can exchange a portion of his farm’s equity for tax-free income.  Most likely, this equity has been built up over the years by farm operations and by property value increases.  With reverse mortgages, a lender gives funds to the farmer and the farmer does not loose title to his farm or be forced to sell his farm.  The loan comes due only when the borrower dies and moves out of the residence permanently. 

The farmer can receive funds from a reverse mortgage in several ways.

•    Receive one single lump sum of cash
•    Receive monthly payments
•    Set up a credit line account
•    Combine all of these options

Farmers can find information about farm reverse mortgages by talking to an independent reverse mortgage counselor and then taking the time to submit an application to the program he selects.  It is important that the farmer know all of the pros and cons of reverse mortgages before deciding whether one is right for him.  Other places to explore farm reverse mortgages are through the local farm bureau, a credit union or a local or regional financial institution. 
There are many lenders for reverse farm mortgages available for a farmer to investigate.  Probably the best way to choose a lender is by word-of-mouth.  Many reverse mortgage companies have websites that include feedback from satisfied customers.  Searching online websites is beneficial and worth the time it takes to find an appropriate reverse mortgage lender.  These websites often contain leads as to where the lowest interest rates can be obtained.  Two excellent websites for senior farmers to explore are Senior Lending Network and Reverse Mortgage Lenders.  The potential borrower should also follow-up these leads with a phone call placed directly to the lender.  Most importantly, the farmer needs to do adequate research before decided on which reverse mortgage lender he wants to utilize.