Most agricultural lenders evaluate five things: repayment ability (cash flow and debt-service coverage), collateral (land and equipment), credit history, equity or down payment, and farm experience. Requirements vary by lender and loan type, so the right fit depends on your operation.
Agricultural lenders assess whether your operation can repay the loan and how well it is secured. The five factors below come up in almost every farm credit decision.
Down payment requirements vary by lender, collateral, and program. Many farm real-estate loans look for meaningful borrower equity, though some government-backed programs are designed for lower down payments.
DSCR compares your operation's income to its debt payments. Lenders use it to gauge repayment ability.
Planning a purchase or refinance secured by farmland? AgLoans.com helps farm families prepare a clear, lender-ready package for requests of $500,000 to $25 million secured by agricultural real estate.
Visit AgLoans.com