Central Coast Lending’s Farm and Ranch Program gives buyers financing capacity of up to $50 million to purchase parcels of land to use for agricultural production. Under the program, financing is also available for buildings, fixtures, equipment, and facilities (dairies, feedlots, storage units or processors) that are attached to the land.
Property qualifications are as follows:
- Agriculture-zoned land (capable of producing agricultural commodities or products)
- Minimum of five acres, no maximum acreage BUT if property is less than five acres, must produce over $5,000 in annual gross sales of agricultural products.
Eligible borrowers must be U.S. citizens or permanent residents with a minimum credit score of 680. Private corporations or partnerships are also eligible, providing members, stockholders, or partners with majority stakes are citizens or lawful permanent residence.
The loan-to-value (LTV) ratio describes the maximum eligible loan relative to the total value of the property. Maximum LTV options for the Farm and Ranch Program include:
- 70%: Land loans up to $5.0 million:
- 60%: Land loans exceeding $5.0 million:
- 65%: Facilities loans (dairies, feedlots, storage units or processors):
The mortgage rate can be structured as either fixed (for a term 7, 10, 15, 20, 25, or 30 years) or adjustable (5-year Adjustable Rate Mortgage, 7/1, 10/1). ARMs offer a fixed mortgage rate for a preset amount of years, before resetting to a sliding rate that adjusts based on a market index.