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Commercial Farm
Mortgage Sources Corp Agricultural Division offers loan products with competitive rates to purchase or refinance farm real estate. Farm loans can have extended maturities with fixed or adjustable term rates. Farm loan approval is normally based upon our underwriting standards as shown on this page. From the first-time farmer or rancher in North Carolina to the established farmer or rancher in California, Mortgage Sources Corp Agricultural Division has the loan product to fit your needs.
Key Criteria for Eligible Loans
• Loan-to-value of 70% or less
• Minimum gross farm income of $5,000
• Qualifying farming operationsRow crop – corn, soybeans, wheat, barley, cotton, tobacco, rice, peanuts
Ranches – livestock, alfalfa hay, CRP ground
Livestock – beef cattle, dairy cattle, sheep
Permanent plantings– tree fruit, nuts, citrus, grapes, berries
Timber – hardwood, pine
Aquaculture – prawns, salmon, trout
Customer Qualifications
• Debt-to-asset percentage of 50% or less
• Current ratio of at least 1:1
• Cash available to service debt of 1.25:1 or better
• Acceptable credit history and minimum median credit score of 660
• Flexibility in the above standards with compensating strengths
Farm Loan Products
• Adjustable rates: 3-month, 6-month, 1-year, 3-year, 5-year, 7-year, 10-year
• Fixed rates: 7-year, 10-year, 15-year, 20-year, 25-year, and 30-year
• Pricing: Index based upon LIBOR, Treasuries, Farm Credit Bank Funding Corporation bonds, and Prime Rate plus an established margin
• Prepayment options: open prepayment, partial open prepayment, full yield maintenance
