![]() ![]() ![]() have no previous debt forgiveness by the Agency, including a guarantee loan loss payment.Virgin Islands, Guam, American Samoa, and certain former Pacific Trust Territory be a United States citizen, non-citizen national or legal resident alien of the United States, including Puerto Rico, the U.S.have the legal ability to accept responsibility for the loan obligation.must not have Federal or State conviction(s) for planting, cultivating, growing, producing, harvesting, storing, trafficking, or possession of controlled substances.Farm Ownership loan funds cannot be used to finance nonfarm enterprises, such as exotic birds, tropical fish, dogs or horses used for non-farm purposes (racing, pleasure, show and boarding).Īll loan applicants must be able to meet the following general eligibility requirements: There are 3 different types of qualifications for a direct farm ownership loan which need to be met:įirst, the operation must be an eligible farm enterprise. The non-FSA financing portion is required to be at least a 30 year repayment period with no balloon payment allowed within the first 20 years of the loan. The repayment term for FSA’s portion of a Down Payment loan is 20 years. The maximum repayment period for the Direct Farm Ownership loan and the Joint Financing loan is 40 years. Interest rates are calculated and posted the 1st of each month. The interest rate charged is always the lower rate in effect at the time of loan approval or loan closing for the type of loan wanted. An FSA guarantee may be used if financing is provided by eligible lenders. ![]() The financing provided by FSA and all other creditors cannot exceed 95 percent of the purchase price. The balance of the purchase price not covered by the down payment loan and applicant down payment may be financed by a commercial, cooperative, or private lender, including the seller. the appraised value of the farm being purchased or.The maximum loan amount under this loan program will not exceed 45 percent of whichever is the lesser amount of: The maximum loan amount for a Joint Financing or Participation Farm Ownership loan is $600,000.ĭirect Farm Ownership Down Payment maximum loan amount works differently. The maximum loan amount for a "regular" Direct Farm Ownership loan is $600,000. The most current Census of Agriculture data is used in this calculation. The applicant may exceed the 30 percent after the loan is closed. Down Payment loans require loan applicants to provide a minimum cash down payment of 5 percent of the purchase price of the farm.Īs established by the Beginning Farmer definition, loan applicants interested in the Down Payment loan may not own more than 30 percent of the average size farm at the time of the application. The Down Payment Farm Ownership loan is the only loan program that does not provide 100 percent financing. Beginning farmers do not have to identify themselves as a minority or woman, and minority and women loan applicants do not have to be beginning farmers. A commercial lender, a State program, or the seller of the farm or ranch being purchased provides the balance of loan funds, with or without an FSA guarantee.Īvailable only to eligible beginning farmers and ranchers and/or minority and women applicants, a Down Payment loan is a special type of Direct Farm Ownership loan program that partially finances the purchase of a family size farm or ranch. FSA lends up to 50 percent of the cost or value of the property being purchased. FSA also offers a Direct Farm Ownership Microloan for smaller financial needs.ĭirect Farm Ownership Joint Financing LoanĪlso known as a participation loan, joint financing allows FSA to provide more farmers and ranchers with access to capital. There are 3 types of Direct Farm Ownership Loans: "regular," joint financing, and down payment depending upon individual needs. promote soil and water conservation and protection.construct, purchase or improve farm dwellings, service buildings or other facilities and improvements essential to the farm operation.Direct Loan Making Handbook 3-FLP (PDF, 2.5 MB)įSA’s Direct Farm Ownership loans are used to:.Fact Sheet: Farm Loans Overview (PDF, 807 KB). ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |