Loan Comparison Chart - 1

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Home > Grants, Loans & Financing > Loan Comparison Chart - 1

Loan Comparison Chart - 1


Requirements Beginning FarmerSeller Assisted**** Loan Programs Aggie Bond Beginning Farmer Program Agricultural Improvement Program
Residency: Minnesota only Minnesota only Minnesota only
Location of property: Minnesota only Minnesota only Minnesota only
Maximum net worth: $455,000 $455,000, also can never have owned more than 30% of the county median size farm $455,000
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 $400,000. $524,200 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 $400,000.
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 / 120 allo. fee
1.5% loan origination fee
$50 application fee
(non-refundable)

Loan Comparison Chart - 2 

MDA Contact

Ryan Roles, Senior Loan Officer
Ryan.Roles@state.mn.us ~ 651-201-6666
Toll Free ~ 1-800-366-8927
Finance & Budget Division