Farm Lenders

Discussion in 'Iowa Whitetail Conference' started by 2dblind, May 9, 2019.

  1. 2dblind

    2dblind Active Member

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    All,

    I was hoping some of you could help direct me to some of the better lenders for purchasing property. This would be an all timber stand first time land purchaser. I know Luana is one of them and do a fair amount but, the more options the better. Who's out there and who have you had good experiences with both in service and rates?

    Appreciate the help!
     
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  3. EVIL X

    EVIL X Member

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    Farm credit services is who I used in the past year. I dont have anyone to compare them to first hand, but was treated well and think I fared well with a good rate. I used the newton branch.
     
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  4. IowaBowHunter1983

    IowaBowHunter1983 Super Moderator Staff Member

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    About every bank in every town in Iowa does ag lending. Some are better than others. I tend to work local and try to establish relationships. I have found I can get better deals whether its rates or waiving fees or whatever.
     
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  5. cybball

    cybball PMA Member

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    I used FCS last year as a first time buyer. Great to work with. Rates were really good and terms worked.
     
  6. 2-bucks

    2-bucks PMA Member

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    I have had the best luck from local lenders. Just got 4.875 on a 15 year, adjustable after 5 years. This was on bare/rec ground.
     
  7. Tim Hull

    Tim Hull PMA Member

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    The best way to avoid the bullcrap adjustable rate is to refinance your house but you can only do that if you don't owe much on your primary residence. I only owed like 50k on a 200k house and bought a 50 acre property for 105K, so I got in at 3% for 15 years. I did have to put 20% down on the rec property.
     
  8. BJohnson

    BJohnson Well-Known Member

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    My existing rec farm loan is with FCS. My current note was initiated in late 2016 at a fixed rate of 4.75% - 20 yr amortization with a substantial down pymt %.

    FCS has an interest rebate program that just recently got increased to .90% of ave loan balance (annually). I am working on an add-on to my farm and their recent rate quotes about a month ago were between 5.15% and 5.35% for 15 & 20 yr terms (prior to the rebate discounts).
     
  9. Daver

    Daver PMA Member

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    Good info in this post, I pretty much did what Tim Hull did. At the time I bought my farm, we owed very little on our house. So I financed the farm with a second mortgage on the house. Worked pretty sweet. Another factor that will influence who would be willing to loan you and what amount would be the income on the farm. If it is all timber, with little to no income, then I think you will find fewer willing lenders. If there is a tillable component, $$$, then your field of lenders opens up.
     
  10. IowaBowHunter1983

    IowaBowHunter1983 Super Moderator Staff Member

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    can get 10 year money for about 5% right now. 3 year.... 4.5%. Lot of value in that 10 year, 20 amz, IMO.
     

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