Anyone got any decent rates on recent land purchases

[jkratz5]

Hey all,

Looking to purchase my first farm. It is about 100acres mostly timber but 20 acres or so of Ag. On that size of property just curious if anyone has made a recent purchase and got a decent rate? Most of what I am finding is around 7%. I have no loyalty to anyone as of yet so any info is much appreciated.

Kratz

 

[Wi transplant]

Congrats ! Farm credits been good to work with for me !

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[Windlooker]

Times 2 for Farm Credit Services. Very easy to work with and competitive rates. Been with them for 22 years. Ag Direct is a subsidiary and good to work with in relation to farm equipment , tractors. Etc.

 

[JBAGS]

Times 2 for Farm Credit Services. Very easy to work with and competitive rates. Been with them for 22 years. Ag Direct is a subsidiary and good to work with in relation to farm equipment , tractors. Etc.

X3 on FCS. I have used local banks and lenders before, which I really would prefer to do as it's nice to build a relationship locally. Last purchase I did in spring of 24' I used FCS for the first time, mainly because nobody else could compete with the rates and they also provide a divedend, which was an added bonus.

 

[jkratz5]

Thanks fellas, appreciate the info!!

 

[Hardwood11]

Iowa bank I’ve used …

 

[booneriverbucks]

If you work with any other banks regularly I’m sure they would be comparable to farm credit. Not that there is anything wrong with them. Sometimes a tiny percentage is not worth working with someone new if you have previously worked with another financial institution. Don’t be afraid to ask around. 6.5-8.5 seems to be the norm tho depending on terms/downpayment. If you have a long history with a lender and can explain what you want to do they might be able to work with you better than someone you have no history with.


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[sep0667]

I went with pilot grove savings bank in 21. They were a little better rate than the handful i checked with, including fcs

 

[IowaBowHunter1983]

I like FCS. Not a good option for short term holds tho. They have a 1% pre-payment penalty.

 

[Wi transplant]

I like FCS. Not a good option for short term holds tho. They have a 1% pre-payment penalty.

Yes have to hold original note for 1 yr than free to do what you want or get 1pct penalty .

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[Windlooker]

One year is nothing

 

[IowaBowHunter1983]

One year is nothing

Depends.

 

[Windlooker]

Please expand. I’m sure there are outlying situations but normally…

 

[Jgamet]

X2 for pilot grove savings bank as recommended by my RE Agent. Competitive rates and will go down to 20 amd sometimes 15% down pmt

 

[deerdown]

Please expand. I’m sure there are outlying situations but normally…

Flipping a farm is one situation I can think of. I didn't plan on it, but I did it a couple years ago.

 

[booneriverbucks]

Just got another “Average” rate given by a local bank. On average most land loans 7.65% for up to 20 year amortization. Recent farm credit loan offered to a well backed/ virtually zero debt customer i know got 6.8

 

[IowaBowHunter1983]

Was just quoted a 5 year fixed on 30 year am at 6.4%


Fully fixed was high 7s.

 

[booneriverbucks]

Awesome! From what i’ve seen anybody that is looking should jump on that.

 

[booneriverbucks]

Was just quoted a 5 year fixed on 30 year am at 6.4%


Fully fixed was high 7s.

Was that straight up or with FCSA included dividend??

 

[IowaBowHunter1983]

Was that straight up or with FCSA included dividend??

Dividend not factored in. So you get 1% back on your loan balance year end.