Through our long established association with National agricultural lenders, a variety of long term financing options are available.
Doane Western offers loan products with highly competitive rates to purchase or refinance real estate and major capital improvements. Farm – Ranch real estate loans can have extended maturities with fixed or adjustable term rates. Loan approval is normally based upon our underwriting standards as shown below.
All loan products are based on either a 15, 20, 25 or 30 year amortizations. Numerous interest rate options are available from Prime Adjustable Rates, to 1,3,5,7 or 10 year adjustable rate mortgages and fixed rates for 7, 10, 15, 20, 25 or 30 years. Some products include an option to convert to another product on payment dates or reset dates.
• No up front loan costs prior to loan commitment
• Commitment letter provided upon loan approval
• Rates can be locked after approved appraisal and title commitment
All with the lowest available interest rates!
Eligibility Requirements:
Loan Size: The minimum loan size is $200,000. There is no maximum loan size.
Loan to Value not to exceed 70% – The maximum loan amount is 70% of the appraised value. For new land purchases, the borrower must have 30% cash or the ability to pledge additional land to equal the remaining 30%.
Debt to Asset Ratio not to exceed 50% – After closing the loan; the total assets of the borrower must be at least twice the total liabilities. This includes all assets of the borrower and all liabilities.
Acceptable Credit History and Minimum of 625 Credit Score – Consumer credit report scores, repayment history of existing debt, prior bankruptcy, tax liens or judgments are all considered in determining whether an applicants credit history is acceptable. A median credit score of less than 660 will indicate credit enhancements such as FSA loan guarantees may be necessary. A median credit score of less than 625 will generally preclude loan approval. Prior bankruptcy can be acceptable if it has been discharged for at least 4 years.
Repayment Capacity – An analysis is conducted to review historical and projected debt service capabilities. We require at a minimum, the borrower provide the last three years tax returns and the last three years financial statements (Assets and Liabilities Balance Sheets). Providing the financial statements is crucial for us to analyze changes in inventories as they reflect the actual earned income vs reported income on the tax returns. In other words, reported losses do not necessarily reflect a bad credit risk.
Document Checklist
• Last 3 years personal tax returns (plus corporations, partnerships if applicable).
• Year to date income and expenses.
• 3 years financial statements (listed assets & liabilities).
• Projected budget for Annual Income and Expenses with income items explained for yields, planted acres, type of crop (including hay for sale), number of calves to be sold, weight and price.
• Signed Credit Authorization Form (provided to borrower).
• Crop & Livestock History Report (provided to borrower).
• Short written narrative about history of farm/ranch, any proposed changes and brief history of applicant.
• Machinery/Equipment list.
Authorization for Release of Credit History can be downloaded here. Print Out, Sign, date and include with package mailed.