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NW KS/ SC ID | Hey all,
With the depressed markets and interest still relatively low, I am thinking this is the time to get in on owning some ground.
So I ask you guys: what are the downsides to an FSA loan?
Would Farm Credit be a better choice? Local Bank?
The only concerns I have about the FSA note is the length of time needed to get through the approval process, when I can be approved much sooner through a bank. But, the downside to going after a bank note is that it takes away my eligibility for an FSA loan if my initial land purchase is not with them.
What other hoops will the FSA make a guy jump through? I have heard that a guy wants to make all his land purchases within a certain amount a time. Is there set limits on land, equipment, and operating, or is it a maximum figure for all, and if a guy has equipment either paid off or financing arranged elsewhere, could all of the limit be put towards a land purchase?
As far as eligibility, I have been helping the folks farm since 2010, and rented the place from them starting last year, so this is year 2, and just planted wheat crop for year 3, so I assume this will be a long enough period?
Any other tips for a first time borrower? This is a big purchase for me, so definitely a few butterflies on this one. :) I have used credit before, (Credit cards) and I currently have an over 800 credit score, and carry a relatively low balance that is paid in full monthly so I dont really have any major debt, but have never had any sort of loan on this scale before, not even a vehicle loan.
I do have a few loans with the folks for some farm equipment. I assume these need to be disclosed on any loan paperwork? The loans are really informal agreements, no paperwork drawn up.
Is it best to undervalue equipment on a balance sheet, or try to put it right at market value?
Any input appreciated,
Thanks!
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Buying first piece of ground: How to go about it?
