Frequently Asked Questions

Here at Farm Plus Financial, we hear many of the same questions from customer's regarding farm loans. We have compiled this list of frequently asked questions as a resource for current customers and potential customers alike. The purpose of these videos is to answer some of the most frequently asked questions relating to farm loans.

How do I begin the application process?

After speaking with a loan representative you will receive an application. To begin the application process we need to receive a completed application and three years of tax returns from all borrowers.

I have credit card debt, car loans, student loans and a mortgage with high interest rates and payments, Can you help?

Yes, we are able to consolidate various types of debt into one new farm loan with a low interest rate.

What types of farm loans are available?

Here at farm plus financial we provide two primary types of loans: A real estate farm loan and line of credit.
We have over 15 different types of real estate loans available ranging from variable rate loans to fixed rate loan options offering a longer term solution to your financial needs.
We also offer a real estate line of credit allowing our customers flexibility in numerous ways. The line of credit has a 10-year draw period and a 30 year amortization.
For more information on the types of farm loans we offer, contact a farm loan representative at Farm Plus Financial by calling 866.929.5585.

I lease my land to a farm operator and do not work the property myself. Am I eligible for your farm loan?

Yes, all types of property owners, investors and farmers, are all eligible for our farm loans.

What are the Semi-Annual and Annual Payment Dates?

For the semi-annual payment dates, you can choose either January 1st and July 1st OR April 1st and October 1st. For the annual payment dates you can choose any one of the four.

What is a Season Loan Option?

A Season loan option is available to customers with loans that have been with us for 5 years or more with good payment history. Farm Plus Financial can provide a rate and term refinance of the current note with no appraisal and little to no credit requirements.

I would like to purchase a farm, but I don’t live in the state the farm is in, can you help?

Yes, since Farm Plus Financial is a national lender we are able to provide financing in these circumstances.

What are your interest rates?

Interest rates vary depending on the loan product you choose. Please contact a loan representative to receive current interest rates.

Do you have a minimum loan amount?

Farm Plus Financial works primarily with established farmers and farm investors looking to purchase, refinance or expand their current farm operation. We provide farm loans from $400,000 to $22,000,000. If you are a beginning farmer, we recommend that you contact the USDA Farm Service Agency. We do require agricultural property as collateral for your farm loan.
For more information, contact Farm Plus Financial at 866.929.5585.

What is a conversion option?

A conversion option is designed to allow our customers to convert from a shorter term (or variable loan) to a fixed rate on any chosen payment date. Conversion options allow our customers to easily convert to a longer term loan without having to submit new financials or paying for a new appraisal. Call your local Farm Plus Financial representative to discuss your farm loan options.

What is a split loan option?

A Split Loan Option permits our customers to split a loan into two or three parts. The split loan option allows customers a combination of lower interest expense, like shorter term rates provide, yet security of long term rates. For example, a customer might elect to place half of their mortgage on a variable rate loan product and the other half on a longer-term fixed rate option. Using this approach a customer benefits from a lower weighted average interest rate on the total mortgage, but also provides security against rising rates, which creates an interest rate hedge. Call your local Farm Plus Financial representative to discuss your farm loan options.

Are there prepayment penalties?

There are no prepayment penalties on our loans meaning you have even further flexibility by having the option to pay off or refinance your loan early without financial penalty. A good reason to consider a lender who does not collect a penalty when paying your loan off early is the financial burden you may endure. In some cases, lenders may charge a penalty of more than 10% of your loan balance if you choose to pay early.

Do you require a certain type of collateral for a farm loan?

Farm Plus Financial specializes in loans that are secured by agricultural real estate. Contact Farm Plus Financial for more information.

What Farm Loan Options do you have available?

Our loan options are designed to provide flexibility to our customers by offering a conversion option, a split loan option, a season loan option and no prepayment penalties.

Do you provide loans for livestock, equipment or farm operations?

Yes, we are able to provide financing for livestock, equipment or other farm operation needs, however, we must use farm land owned by the applicant as collateral for the financing.

I currently have a farm mortgage in place but I need additional financing for operating, can you help?

Yes, we are able to offer several solutions including a line of credit with a 10 year draw period and/or a refinance of your current farm mortgage.

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I have a residential mortgage that traditional banks cannot refinance, can you help?

Yes, most residential lenders are not able to refinance large acreage properties due to new federal regulations; we are able to refinance residential mortgages on properties that have an agricultural use.

I am looking at purchasing a property, when should I contact a loan representative?

You should contact a loan representative as soon as you begin the property search process. We will be able to determine if a pre-approval can be issued, and if so, what amount you are pre-qualified for. Submitting a pre-qualification letter along with an offer will strengthen your offer and increases your chances of placing the property under contract.

Will I qualify for a farm loan based on my credit score?

In order to qualify for our farm loans we need a minimum 680 credit score from all borrowers.

If your questions were not answered through these frequently asked questions, please contact Farm Plus Financial at 866.929.5585.