Has anyone ever used one of these for financing? I found a local one while browsing that according to their web page specializes in financing farms, rural homes and land, recreational land etc. From what I could gather it is a privately owned lender. Just wondering what I could expect if I filled out a loan app with them for some land that I would like to build my homestead on in a few years. Webpage said they would finance up to 85% on acreage unlike traditional lenders where its more like 65%. Thanks, Matt

-- Matt-AL (matt_warren@hotmail.com), March 20, 2002

Answers

What is the web address, I would like to look at it.. Thanks

-- Kristean Thompson (pigalena_babe@yahoo.com), March 21, 2002.

http://www.alabamalandloan.com/

-- Matt-AL (matt_warren@hotmail.com), March 21, 2002.

We financed our farm through Farm Credit Services (which is also a member of the Farm Credit System). They are, I believe, a quasi- fedgov corporation. Here in MI they were easy to deal with and easy to get a loan through. We also have farm operating line of credit with them although we seldom use it, except around planting time if we have some short term cash flow problems. The interest rates for the mortgage loan was on the high side compared to the house with lot rates, but that's because it is a non- saleable mortgage. Before we paid off the farm we went to a commercial bank to refinance it and the rate they were offering was very comparable. We ended up not refinancing and paying the farm off. Best move we ever did cause now were free except for lot rent to the gov.

-- Brian Phillip (notiller64@yahoo.com), March 21, 2002.

Farm Credit is in no way shape or form connected with the blood sucking vampires formerly known as the Federal Government ;-)!!! They are a totally private entity that finances land/farm based loans, operating loans and equipment loans. They require a minimum of 20 percent downpayment and only finance those who have excellent credit histories.

We have used Farm Credit to finance farms for the last 20 years, paying off all of them so far, they charge a bit higher interest rates than conventional mortgages, but farms offer a higher risk/default rate, so it is to be expected.

-- Annie Miller in SE OH (annie@1st.net), March 23, 2002.

Annie, While I will stand corrected on the fact that Farm Credit is not part of the government. The Farm Credit System was a creation of the Fed Gov and is uniquely regulated by Fed Gov. While the gov't does regulate all banking Congress has bailed out the system a couple times by providing loans. Congress has passed laws expressly for and about the system. To say that "Farm Credit is in no way shape or form connected with the blood sucking vampires formerly known as the Federal Government" is not totally correct either.

This is the problem with creeping socialism. The lines can get very blurry. :o)

-- Brian Phillip (notiller64@yahoo.com), March 24, 2002.