FHA limits on hobby farm or acreage?

[Anonymous]

YIKES!  New issue popped up today.  The home we are looking at has 38 acres and several outbuildings.  We are approved FHA but now am being told we are waiting for the UW to determine if the property is okay since it is listed as a "hobby farm".

Any BTDT stories or knowledge on this?

[ShanetheMortgageMan]

If it's marketed or notated within the appraisal as income producing that will be a problem with pretty much all lenders, otherwise FHA doesn't have any issues with acreage... it just needs to be typical for the area and must have similar comparables.  If it just happens to be a big field, perhaps a nice sized vegetable/herb garden, with an outbuilding or two, some cows, sheep, etc. I don't think that'd be an issue.  If it's a full on working farm, that'd be an issue.