Established Farmer Real Estate Loan Program

The Established Farmer Real Estate Loan Program assists the farmer and rancher with agricultural real estate loans.

Qualifying Requirements

Borrower - Any North Dakota resident.

Use of Proceeds - The maximum amount available to any one borrower is $1,000,000. The proceeds shall be used for agricultural purposes.

Collateral - BND may lend up to 65% of the appraised value of the real estate being pledged as collateral. It requires a first mortgage on the property that is being used as collateral. In addition, BND requires an assignment of rents.

Application Process

An application for a loan is made directly to BND. In addition to the application documents located at the link listed, BND must have the following:

• The borrower's three previous years financial statements
• Copies of the borrower's three previous years of tax returns
• ASCS aerial photos of the subject property
• A narrative explaining the loan request, farming experience and management ability of the borrower

BND will act upon a loan request when this information is received. Additional information may be required depending upon the circumstances of the loan and the borrower.

Upon the approval of the loan, BND will require:

• Hazard insurance on all buildings used as collateral naming BND as "loss payee."
• Current qualified appraisal of the real estate which demonstrates that the loan meets BND's collateral requirement. The cost of this appraisal is paid by the borrower. (This appraisal should not be ordered until requested by BND).

BND will follow its normal loan review procedures in evaluating the loan. If an application has been approved and a commitment is given, a borrower may have up to 90 days to draw the funds. If the funds have not been drawn upon within the commitment period, BND will cancel the commitment without further notice to the borrower.

Interest Rate

The interest rate is a market rate of interest and may be fixed or variable. Variable rate adjustments are limited to a 6% increase over the original rate during the term of the loan.

Farm Real Estate Loan Rates

Repayment Terms

The term of a loan may not exceed 25 years. Annual amortized payments are required. Prepayment penalties do not apply.

Fees

All costs incurred by BND in connection with a loan application and loan closing must be paid by the borrower. Upon the acceptance of BND's commitment, a non-refundable commitment fee is due prior to funding.

For more information please contact us at:

Bank of North Dakota
1200 Memorial Hwy
PO Box 5509
Bismarck, ND 58506-5509
(701) 328-5624
1-800-472-2166 ext. 5624
TDD (Telephone Device for the Deaf) 1-800-643-3916