First Source Capital offers a many loan products designed to meet the needs of today’s farmers, ranchers and agri-businesses. Through relationships with institutional investors and other non-government investors, First Source Capital facilitates quick and easy one-stop access to loan programs at competitive rates for a variety of purposes. Loan products are available without prepayment penalties on fixed and variable rates and terms up to 30 years. First lien loans are offered at the lower of 70% of value or purchase price. Combo first and second lien loans may push up to as high as 80.00% with seller seconds or local Bank financed second liens.
First Source Capital offers options for borrowers who may not meet traditional lending standards of Farm Credit, Farmer Mac or local Bank programs. For information on the farm and ranch “alternative non-prime” farm and ranch loan programs please call us at 1-888-484-1256 today!
Farm & Ranch Long Term Fixed-Rate Loans
Fixed rate and variable rate loans are all available and include 3, 5, 7, 10, 15, 20, 25 & 30 year fixed rate terms with amortizations to 30 years. Payments plans are monthly, semi-annual or annually, subject to underwriter’s approval. Income must be ascertained in amounts sufficient to service debt. Inquire for more information on loan parameters of underwriting approvals.
Enhanced Rural Lifestyle Ranch Loans
The Enhanced Lifestyle Ranch Loan Program is for an individual wage earner(s) who want to finance at least 60 acres for recreational or hobby farm use. Income to repay debt is not predicated on receipt of farm income. Fixed rate options for loans up to 30 years are available as well as shorter term loans on variable rate programs. Underwriting turn time is quick, and most underwritings are painless.
Real estate Secured Revolving Line of Credit (RLOC).
An RLOC can be used for all the operating needs of your farm or ranch. 5 or 10 year commitment terms, interest only, and all or a portion of any RLOC can be converted to a fixed rate loan at any time during the draw period. Semi-annual payments required.
Eligible Farm and Ranch Loan Qualification Components
• Loan sizes: $150,000 min to $3,000,000 (higher upon request and approval)
• Loan-to-value: Up to 70%; with 80% Combined LTV using seller or bank second lien
• Minimum annual debt obligations: 39% (calculated total annual P&I/gross income)
• Credit score: Acceptable credit history and a minimum credit score of 700
• Purpose: Purchase or refinance; cash-out loans are generally not allowed on farm and ranch loans
• Improvements and dwellings on properties with commercial purpose are acceptable in most cases
Contact us with any questions or scenarios!
Recreational Land Loan Program
- 70.00% LTV Excellent program with quick and easy approval process
- 30 year fixed rate and ARM loans
- Flexible loan terms to suit borrower needs Land with barns, fencing, and other site improvements acceptable
- Site improvements limited to 25% of the appraised value
- Property located outside of the established city limits
- 60 acres minimum preferred (exceptions may be possible )
- Income may include limited production of livestock and crops
- Open Space for AG USE exemptions on property taxes preferred
- Minimum FICO scores 700 for all borrowers
- Max Debt to Asset Ratio 55.00% based on current balance sheet
- 39.00% Annual P&I /Gross Income ratio
- Appraisers selected from qualified panel of rural appraisers