Valuable Loans for Farmers Through Farm Credit Services
The American farmer sets America’s table. Farming is a lasting rural culture that continues to be rooted in the principles of hard work, family, integrity and tradition. When the American farmer needs financial assistance, we are proud to be able to provide sound and dependable services to meet their needs. We have been proudly assisting farmers with farm credit services since 1997.
Farm credit services provides farmers and ranchers with programs designed specifically to meet their individual needs. Loans are available to assist with the purchase of agricultural land, expand your existing farm, refinance debts, purchase farming equipment or build that perfect rural home. Both full-time and part-time farmers are eligible for loans through farm credit services.
Our farm credit services are attractive because they afford farmers unique benefits. Payment dates can be customized. We offer stable and long-term interest rates. Loans can be repaid early with no prepayment penalties. Significantly important is that loans are secured by the federal government’s Federal Agricultural Mortgage Corporation (Farmer Mac).
Loan requirements are typical for other types of loans. The borrower must possess a reasonable credit score. The applicant must have sufficient income to meet all personal and business debts. The agricultural property must be located within the continental United States.
We can offer farm credit services on a number of loan programs. Probably, the best known type of loan comes with a fixed rate mortgage. This loan has a fixed payment and a steady interest rate. Terms of these loans are typically from 10 to 30 years.
The adjustable rate mortgage (ARM) comes with an interest rate that may fluctuate during the course of the loan. These loans generally commence with a fixed rate for a relatively short and specific period of time. This time period is usually 12 months. At the end of that period, the interest rate may be adjusted to reflect the current market. The advantage to an adjustable rate mortgage is that the beginning interest rate may be less than the rate for a fixed rate mortgage.
Relatively new are the hybrid ARMs. These loan programs combine the fixed rate mortgage with the adjustable rate mortgage. For several years, the loan has a fixed interest rate, but at the end of that time, the loan could change to one with an adjustable rate for the remainder of the loan. Initial periods can run from three to ten years. These loans tend to provide low rates with stable payments for the initial repayment period.
Interest only loans allow borrowers to repay only the interest during an initial period. The up-side is that this allows the borrower to initially have more money in his pocket to take care of his farming expenses. The down-side is that when the loan is fully amortized, the payments generally increase substantially. While this type of loan does not allow the farmer to build any equity, it may provide the opportunity to make the purchase he really wants. Farmers with inconsistent incomes may benefit most from interest-only loans.
Farm credit services provide loans for farm real estate, operating capital, livestock and equipment purchases. To serve the needs of rural America, we also offer crop insurance. While farmers tend be our focus, we also are happy to make loans to people who want to live in the country. We have experts in rural lending who can help make your dream of purchasing a home or land a reality.