USDA farm loans

 

 Call 631-451-7400  FSA

USDA Farm Loans
Call  631-451-7400
The finance Experts
Serving clients since 1987
Financial Services of America     -  All 50 states

What is a USDA Loan?

A USDA Guaranteed Loan is Government insured 100% purchase loan. These Loans are serviced by direct lenders                         ...that meet federal guidelines and only offered in rural areas.

  
 

First Mortgage USDA loans Full Time Farms

Jim Pendleton - MrMortgageTM

FULL-TIME FARMS

Property Eligibility:

• Agricultural Real Estate securing loan must be at least 5 acres

• Land must produce at least $5,000 annually

• CGB AFS must have fi rst mortgage position on Real Estate Collateral

Credit Standards:

• Pro Forma Debt to Asset Ratio< 50%, market value

• Pro Forma Debt Coverage > 1.25:1

• Pro Forma Current Ratio > 1.00:1

• Annual farm cash receipts of > $5,000

• Property debt coverage > 1.00:1

• Any slow pays on Mortgage account must be fully explained

Minimum Credit score 660

Documentation Required:

Complete, signed application

• Current balance sheet, signed

• 3 year’s historical tax returns

• Projected income and expense

• 3 year’s historical balance sheets

• 4 year historical production

Maximum LTV 70% up to $3 million; over $3 million 60% LTV

Maximum LTV 60% if greater than 25% cash out

Maximum LTV 50% if greater than 25% cash out and loan exceeds $3 million

Maximum loan term 25 years Maximum amortization 25 years

Monthly, annual and semi-annual payments available

Open Prepayment options available