Abstract: Based on the survery data of Yongfeng County, Jiangxi Province, this paper applied Logit model to explore the influence of farmer’ s financial literacy on the participation behavior of homestead usufruct mortgage loan and the regulating effect of farmer’ s homestead dependence. The results were as follows: Farmers’ financial literacy had a significant positive effect on their participation in mortgage loans. Among the components of financial literacy, financial information attention and risk recognition ability had a significant positive impact, and financial ability was not significantly negative correlation; Farmers’ homestead dependence had a moderating effect on financial literacy and homestead usufruct mortgage loan participation. High homestead dependence would weaken the possibility of farmers’ homestead usufruct mortgage loan participation, while low homestead dependence would strengthen the possibility of farmers’ homestead usufruct mortgage loan participation. Heterogeneous results showed that, households with certain economic strength and who had learned about the policy of pledging rural land usufructs through formal channels had significantly higher financial literacy, which affected their participation in rural land usufructs pledging loans. Based on the above analysis, this paper offered some suggestions: Strengthen the propaganda of the mortgage loan policy of the right to use the homestead, and improve the financial literacy of farmers; Expand the channels of knowledge popularization and popularize modern financial theory; Improve the rural financial legal system to protect the legitimate rights and interests of farmers; As well as deepen reform of the homestead system and raise the level of housing security for farmers.