Farm Loan Requirements and Qualifications
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Answer the questions below to see if you meet our basic qualifications:
Basic Loan Requirements
We offer loans from $200,000 up to around $50 million.
All borrowers must have a credit score of at least 660.
We can finance up to a 75% Loan-to-Value.
Loan-to-Value (LTV) is the amount you’re borrowing, relative to the property’s appraised value.
Say you were to purchase a $1,000,000 property and the lender had a maximum LTV of 75%:
The most you could borrow would be 750,000. The other 25 percent (similar to a down payment)
would be required in the form of cash or additional pledged collateral from the borrower.
-5 Acre Minimum Property Size-
We cannot currently finance properties under 5 acres. (exceptions based on gross annual ag receipts > $5k)
-Lines of Credit-
Require 50% LTV bare land value
As part of the loan process you will commonly be asked to provide:
– A completed farm loan application –
– Up to three years of tax returns (complete) –
– A current balance sheet –
The documents below are typically required depending on your chosen loan product. Every loan is unique, therefore you may be required to provide more or less documentation with regards to your specific circumstances. For more information, visit our FAQ page.
Additional documentation will be required later during the loan process, including documentation regarding:
- Copy of signed sales contract, including all riders
- Verification of the deposit you placed on the farm property
- Names, addresses, and telephone numbers of all realtors, insurance agents, and attorneys involved
- Copy of Listing Sheet and legal description if available
Your Income & Liabilities
- Up to three years of tax returns including all schedules, and the most recent year for any corporation(s) with a 10% ownership or more
- Copies of your paystubs and W-2 forms
- Divorce decree/court order stating amount, as well as, proof of receipt of funds for last year, if you plan on using Alimony or Child Support to qualify
- Any debts not reporting to credit report, will require a credit verification
Source of Funds & Down Payment
- Savings, checking or money market funds – provide copies of most recent bank statement (account print-off is adequate)
- Stocks and bonds – provide copies of your statement from your broker or copies of certificates or account print-off
- Based on information appearing on your application and/or your credit report, you may be required to submit additional documentation
- A current balance sheet/financial statement listing all assets/liabilities
What People Are Saying
Farm Plus Finacial came through for us when nobody else would. We had been looking to pay off our owner-carry loan for a year or more. F P F got our financing and the owner’s carry paid off in a timely manner. They also bundled a high-interest cow loan we had with a local bank, in with their new low-interest financing. Our relationship manager, Logan Case was a huge help throughout the entire time. His hard work, dedication and positive attitude were over the top. Thanks so much!
We are extremely please with working with Aaron at Farm Plus Financial. We have been working together for 2 years to get us to a land loan consolidation that would give our farm more financial flexibility and growth potential. He was always responsive to our questions and made the requests for information very clear. As with any loan, issues are likely to present themselves, and Aaron handled ours beautifully. We highly recommend the team from Farm Plus Financial.
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