Loan Products - Group III (FSA Guaranteed Loans)

Principal Amount:

The loan may be in a principal amount of no less than $100,000 with a maximum of the USDA Farm Service Agency loan guarantee limit ($949,000 until October 1, 2008).

Underwriting Guidelines:

• The loan-to-value ratio may not exceed 70%.
• Pro forma minimum liquidity ratio of 1:1.
• Pro forma and historical total debt coverage equal to or greater than 1.10.  This includes net income from both farm and non-farm sources.
• Pro forma debt-to-asset ratio of 50% or less.
• Acceptable credit history.

Features Available:

• Prime “plus” loan with the rate adjustable when the Wall Street Journal Prime Rate changes
• 5 and 10-year Reset loans with a maximum 25-year amortization
• 7, 15, 20 and 25 year Fixed Rate loans with a maximum 25-year amortization

Although the underwriting guidelines outlined above are considered minimum requirements, loans that slightly exceed one or more of these guidelines may still qualify if there are sufficient offsetting strengths in other underwriting areas.