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FARM REAL ESTATE LOANS

 

LAND-EQUITY, REAL ESTATE LOANS

Planning forward on a strong foundation

At AgriFinancial, our team of ag experts truly understand the capital-intense environment you work — day in, and day out. When flexibility and dependability are key, finance confidently with adjustable or fixed real estate loans at competitive rates from AgriFinancial.

CHOICES TO FIT YOUR GOALS

A wide variety of fixed & variable rate term options,  from 1-month to 30-year fixed rate

  • Check out our Loan Calculator
  • No prepayment penalties*
  • Loans up to 70% loan-to-value
  • Monthly, semi-annual, quarterly or annual payments
  • Refinance or restructure existing loans; shorten or lengthen your terms
  • Get pre-approved for an auction of private purchase
  • Make payments, view accounts online

*Determined by loan product selection.

BEFORE YOU SPEND A DOLLAR

For all borrowers, provide us with:

  • Signed application
  • Current balance sheet
  • Federal tax returns**
  • Ag production history**

Once you decide to formalize the application:

  • Entity documents
  • Historical balance sheets
  • Farm income/expense projections
  • Asset, debt & income verifications

**3 years required; additional 2 years may be requested.

LOAN-WORTHINESS

We tailor our solutions to fit your goals, but below are a few guidelines before you apply:

  • Debt-to-asset ratio of 50% or less (Total Debts/Total Assets)
  • Current ratio of at least 1.25:1 (Current Assets/Current Debts)
  • Available cash to service debt of 1.25:1 or better
  • Acceptable credit history
  • Credit score of 680 or above
  • Anyone who produces farm income is eligible (including those who cash rent the farm land they own)

AgriFinancial offers Farm Service Agency (FSA) Guarantee Loans throughout the nation. These include loans with higher loan to values, beginning farmers, or higher credit risk customers. Contact us for more information on these programs.

 

LOAN PROGRAMS

  • Fixed Rate Products have a fixed interest rate for the entire loan term. If the amortization exceeds the term, the loan will have a balloon payment at maturity. (i.e. On a 15-year fixed term loan with 25-year amortization, the loan balloons in 15 years and the balloon payment is due at that time.) AgriFinancial offers 7, 10, 15, 20, 25, and 30-year fixed rate products.
  • Adjustable Rate Mortgage (ARM) Loan Products have a fixed interest rate for the initial period selected, then reprice and fix again for the same period. This continues throughout the loan term. (i.e. On a 3-year ARM, the loan will reprice every 3 years.) AgriFinancial offers 1, 3, 5, 7, 10, and 15-year ARM products, as well as a 1-month LIBOR product.
  • Variable Rate Mortgage (VRM) Loan Products are fixed for an initial period, reprice, and are then fixed for the shorter of the same period or the remaining term of the loan. This continues throughout the entire loan term. (i.e. On a 10-year VRM with a 25-year term, the loan will reprice twice – at year 10 and year 20, then remain fixed for the final 5 years.) AgriFinancial offers 10 and 15-year VRM products.

 

PREPAYMENT PENALTIES

Many of our products are offered with an open prepayment option; however, you do have the option to choose products with prepayment penalties.

  • Open Prepayment There is no fee for non-scheduled loan payment, but payments in excess of the scheduled payment must be made on any regularly scheduled payment date. Any prepayment made other than on a regularly scheduled payment date must be accompanied by interest to the next scheduled payment date. This also applies to payment-in-full of the loan prior to loan maturity.
  • Partial Open Prepayment Calculation of partial open prepayment penalties vary by product. Prepayment penalty is calculated as a percentage of the additional payment being made and is a sliding scale prepayment penalty. Most products' prepayment penalty is applicable in the first 5 years of the loan.
  • Make Whole Prepayment Any payment of the loan made before the maturity date requires a penalty on the difference between loan rate and investment rate of the loan.

 

Our team will discuss your goals every step of the way. We’ll work with appraisers and title companies in your community if possible, and you don’t pay a dollar until your application is approved. Let’s start discussing your goals today.