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east central iowa | I state is correct, no lender will touch 5% down without it. Try to find a lender that has dealt with the program in the past and they can really help you out with it all. The land must cash flow and the fsa does use below market prices, so you probably can't cash flow the really high value ground, but in my experience the marginal ground can be bought and cash flow in this program. The downside is that the fsa part is only on a 20 year term, and every year you have to fill out a net worth statement and cash flow for them, it also takes a lot longer for the loan to close. You might have to buy the farm for your son if it is an auction or if they want to close quickly and then sell it to your son when the fsa loan closes. I also would not own any ground without this program, the 5% down made that easy for me, and with the increase in land values, I now have switched mine over to farm credit services without putting any more cash into it. | |
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New farm program
