Lender Access	Farm and Ranch Mortgage Loans	Farmer Mac III Options	Loan Delivery	Products	Portfolio Programs
Product Name Farmer Mac III Farm and Ranch Loan Option Description The Farmer Mac III option is a Farmer Mac I loan (a first mortgage on real estate) along with a government-funded second mortgage. Eligible Properties Parcels of land with production of one or more agricultural commodities or products. Land may be improved (by buildings and machinery, fixtures and equipment or other structures permanently attached) if improvements constitute 30% or less of value contribution. No minimum or maximum acreage requirement. Origination Forms Farmer Mac I loan: Sellers’ origination forms and loan documentation. Maximum Loan-to-Value (LTV) 50% for Farmer Mac I loan (based on bare land value if permanent plantings on the property) 85% CLTV: Farmer Mac I loan + government-funded guaranteed loan Mortgage Amounts $750,000 maximum for Farmer Mac I loan Second mortgage guaranteed loan must meet the federal or state guarantee program requirements. Eligible Borrowers U.S. citizens (or nationals) or aliens lawfully admitted for permanent US residence; private corporations or partnerships where members, stockholders or partners holding a majority interest in the entity are US citizens (or nationals) or aliens lawfully admitted for permanent US residence. Underwriting Standards Pro forma guidelines listed below. Credit score normally at least 640. Flexibility to accommodate credit characteristics typical of specific segments of agriculture. Pro forma Ratio   Farmer Mac I Loan to Value 50% Combined Loan to Value 85% Debt to Asset 60% or less Total Entity Debt Coverage 1:1 : 1 Property Debt Coverage 1:0 : 1 Min Appraisal Appraisal must meet USPAP standards. Sellers must use state- licensed or certified appraisers. Limited appraisal requirements for loans less than $250,000 and for seasoned loans. Collateral Properties that meet requirements for Farmer Mac I loans, except properties with significant value (greater than 30%) contribution from improvements (greater than 30%) other than dwellings or permanent plantings. Credit Profile Credit analysis must evidence applicant’s ability to repay loan in accordance with loan terms. Farmer Mac recognizes the five credit factors for credit analysis: character, capital, capacity, collateral and condition. Funding Table funding available. Selling Par pricing for mortgages delivered with a net 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 10 to 100 bps (0.10% to 1.00%) field servicing (up-pricing) to the Net Yield to determine the Note Rate to the borrower. Field Servicing retained by Seller. Field Servicing fees are remitted to the Seller after each payment is made. Sellers also keep all origination fees. Annual Field Servicing requirements: act as the primary contact for the Borrower for issues other than loan installments and billings; monitor the Borrower’s compliance with the terms of the loan documents; monitor the payment of property taxes and insurance; inspect collateral as required; file UCC Continuation Statements; request annual financial statements when Borrowers have an aggregate unpaid principal loan balance greater than $250,000; work closely with the Borrower to resolve loan delinquencies. Mandatory delivery. Prepayment All Farmer Mac full open prepayment rate products are eligible for the program, with payment options limited to semi-annual or monthly pay. No partial open prepayment or yield maintenance product may be selected.