Maximum LTV for facility loans ranges from 65% to 80% depending on type of
facility, age of facility, contract with integrator, etc. August 15, 2012, the
maximum LTV is 60% in the following states: Illinois, Iowa, Indiana, Minnesota,
Missouri, Nebraska, North Dakota, Ohio and South Dakota
Maximum Mortgage Amounts:
-
$11 million maximum for loans secured by more than 1,000 acres
-
$30 million maximum for loans secured by 1,000 acres or less related borrowers,
through one or more loans
Eligible Borrowers:
U.S. citizens (or nationals) or aliens lawfully admitted for permanent U.S.
residence; private corporations or partnerships where members, stockholders or
partners holding a majority interest in the entity are U.S. citizens (or
nationals) or aliens lawfully admitted for permanent U.S. residence.
Underwriting Standards:
Pro forma guidelines listed below.
| Pro forma Ratio |
*Standard Pricing |
Choice Pricing |
| Loan to Value |
70% |
60%
|
| Current Ratio |
1.25:1 Min |
1:5:1 Min
|
| Debt to Asset |
50% or less |
40% or less |
| Total Entity Debt Coverage (TDC) |
1:25:1 |
1:50:1 |
| Credit Scores (FICO) |
680 |
680
|
*Compensating strengths will be considered under Standard Pricing except for
loans where the LTV is greater than 60%. In those cases, TDC must be greater
than or equal to 1.50:1 and no exceptions for proforma debt to asset ratio and
proforma current ratio standards. The maximum LTV for loans greater than $5
million is 60%.
Fast Track is an alternative underwriting option that provides a streamlined
submission option and an accelerated approval process for farm mortgage loans.
Maximum loan size and pro forma guidelines for Fast Track are listed below.
| |
Fast Track |
|
| Max Loan Size |
$1,000k |
|
| Loan-to-Value Ratio |
55% |
|
| Debt to Asset Ratio |
40% |
|
| Current Ratio |
1:1 |
|
| Total Entity Debt Coverage |
1:1 |
|
| Credit Scores (FICO) |
720
| |
Note: Special credit guidelines apply for facility loans (loans where the
contributory value of ag producing structures exceeds 60% of the total appraised
value)
Small ranch properties (consisting of at least 60 acres) may be submitted to Farmer Mac using the Lifestyle Ranch underwriting option outlined below. The value of any property improvements generally should not exceed 25% of the total appraised value.
| Lifestyle Ranch |
| Max Loan Size |
$3,000k |
| Loan-to-Value |
70% |
| Debt to Asset Ratio |
55% |
| Current Ratio |
1:1 |
| Maximum Annual Debt Obligations (P&I)/Gross Income |
39% |
| Credit Scores (FICO) |
700 |
| No Cash-Out |
| Farmer Mac Underwriting Grid. To view, please
select option below:
PDF Version: Scroll through to read about all programs
|
Loan Submission:
Farmer Mac I Farm and Ranch Loan packages are to be submitted using Farmer Mac’s
web-based AgPower® Loan Origination System (LOS). Access to AgPower® LOS is
through a link in the approved Seller section of the Farmer Mac website.
Loan-related support documents are to be scanned and submitted through AgPower®
LOS.
Appraisal:
Appraisals for Farmer Mac I Farm and Ranch loan submissions must meet USPAP
standards. Sellers must use state-licensed and certified general appraisers.
Credit Profile:
Credit analysis must evidence the applicant’s ability to repay the proposed loan
in accordance with its terms. Sellers are expected to address the applicant's
character, capital, capacity, collateral and conditions in the credit
presentation. A credit score of 680 or greater is required for all applicants.
Loan Documentation:
When it comes time to prepare loan documentation, Sellers have the option of
preparing the documents themselves or using a documentation preparation service
company recommended by Farmer Mac. More information is available in the approved
Seller section of this Farmer Mac website.
Funding:
Loans must be closed in the name of the originator or Seller, not Farmer Mac.
Table funding is available.
Selling:
Par pricing for mortgages delivered with a coupon equal to the published Net
Yield (rate to Seller). Indicative Net Yields are posted daily as a pricing
guide on the Farmer Mac website at www.farmermac.com. Sellers add a minimum of
10 basis points (0.10%) Ffield Servicing (up-pricing) and maximum of 150 bps
(1.50%) to the Net Yield to determine the Note Rate to the borrower. These
amounts are paid to the Seller by the Central Servicer as borrower payments are
received. The Seller also retains any origination fees it charges.
Products/Payments:
Monthly, semi-annual or annual payment products are available. Product choices
include variable, adjustable, and fixed rates with maturities up to 30 years.
Open prepayment or yield maintenance options.
Field Servicing:
The Seller of the loan retains Field Servicing responsibilities and at the
direction of the Central Servicer has the following duties:
-
Maintain an ongoing relationship with the Borrower and act as the primary
contact for issues other than loan installments and billings;
-
Monitor the Borrower’s compliance with the terms of applicable loan documents
such as payment of property taxes and insurance;
-
Inspect collateral as required;
-
File UCC Continuation Statements;
-
Obtain annual financial statements from the borrower(s) when requested by the
Central Servicer;
-
Work closely with the Borrower to resolve loan delinquencies in accordance with
the Farmer Mac Seller/Servicer Guide.
