Series I Farm Real Estate Loans

The North Carolina Agricultural Finance Authority (NCAFA), created in 1986 to provide affordable credit to North Carolina farmers and agri-businesses unable to obtain credit from local sources at reasonable rates and terms, offers Series I Farm Real Estate loans. Loan purposes may include buying, improving, or enlarging farms; construction, improvement, or repair of farm homes and service buildings; improvement of on-farm water supplies; installation of pollution control; soil and water conservation measures, irrigation systems, and drainage improvements; refinancing debts; and providing for production of fish under controlled conditions.

Individuals, farming corporations, partnerships, or joint operations that have sufficient education, training, or experience to manage and operate a farm; are U.S. citizens or legal resident aliens maintaining a farming operation in North Carolina; have the legal capacity to incur the loan obligations; are unable to obtain credit elsewhere without an FSA guarantee; have an acceptable credit history; and will be the owner-operator of a family farm after the loan is closed.

Apply through the NCAFA. A $150 application fee is required at submission; at closing a fee of 1/8th of 1% of the loan amount is required. NCAFA covers all loan processing costs, including the FSA guarantee fee (1.5% of 90% of principal), appraisal, and docket preparation, and does not charge an origination fee. Terms: prime plus 1.75% (variable, may change quarterly), for periods up to 15 years, secured by liens on the real estate. Loan limit: up to $2,037,000.00 (amount varies annually based on Farm Service Agency guarantee limits).