Residency:

Minnesota only

Minnesota only

Minnesota only

Location of property:

Minnesota only

Minnesota only

Minnesota only

Maximum net worth:

$428,000

$428,000, also can never have owned more than 30% of the county median size farm

$428,000

Loan purposes:

Real estate

Purchase animals, machinery, real estate or to make an improvement. (No refinancing)

Any physical improvement to farm operation. (Limited refinancing)

Financing allowed:

First real estate mortgage filed by local lender. Additional $$ help by the seller.****

Secured as lending entity requires.

First real estate mortgage. Mortgage does not need to cover the entire farm.

Equity required:

10% minimum. Lender may require higher down payment. Seller may help.****

Negotiated with lending entity.

Negotiated with Lender and RFA.

Interest rate:

RFA - Call for current quote.
Lender-negotiate.
Seller-negotiate.****

Reduced interest rate for buyer and tax benefit for lender.

RFA - Call for current quote.
Lender-negotiate.

Loan amounts:

No limits - but RFA participation 45% of first mortgage to a max of $300,000.

$488,600 max. but only $62,500 max. for used depreciable assets; $250,000 max for new depreciable farm property. (The RFA does not participate.)

No limits - but RFA participation 45% of first mortgage to a max of $300,000.

Sales between related persons?

Yes

Yes, bank financing only.

N/A

Off-farm income okay?

Yes

Yes

Yes

Must show adequate management skills?

Yes

Yes

Yes

Must be or become a full-time farmer?

Yes

Yes

Yes

Must farm unit?

Yes

Yes

Yes

Must contact local SWCD office?

Yes

Yes

Yes
Permits required?

Must purchase insurance?

Yes

Recommended

Recommended

Must attend farm management classes?

Yes

Yes

N/A

RFA Fees:

$50 application fee
(non-refundable)

$50 application fee (non-refundable)
plus the following:
$20 / 40 / 60 / 80 / 100 allo. fee
1.5% loan origination fee

$50 application fee
(non-refundable)