Series I Farm Real Estate Loans
The North Carolina Agricultural Finance Authority (NCAFA) was created in 1986 by the North Carolina General Assembly to provide affordable credit to North Carolina farmers and agri-businesses unable to obtain their credit needs from local sources at reasonable rates and terms.
|WHO CAN BORROW FROM NCAFA?|
NCAFA Series I Farm Real Estate loans can be made to individuals, farming corporations, partnerships or joint operations. The individual or entity must:
|WHAT ARE THE LOAN PURPOSES?|
The purposes of NCAFA's Series I Farm Real Estate loans may include the following:
|WHAT ARE THE TERMS?|
|NCAFA's Series I Farm Real Estate loans are made at prime plus 1.75%. The rate is variable and may change quarterly. The terms for repayment may be for periods up to 15 years.|
|WHAT TYPE OF SECURITY IS REQUIRED?|
|NCAFA's Series I Farm Real Estate loans will be secured by liens on the real estate purchased and/or improvements made with loan funds and other security as required on an individual basis.|
|WHAT ARE THE LOAN LIMITS?|
|NCAFA's Series I Farm Real Estate loans can be made up to $1,399,000.00 (amount varies annually based on Farm Service Agency guarantee limits).|
|WHAT ARE THE CLOSING COSTS AND FEES?|
A $75 application fee is required when the application is submitted. NCAFA will cover all loan processing costs, including the FSA Guarantee fee of one and a half percent (1.5%) of 90% of the principal amount of the loan, appraisal cost and docket preparation and not pass these costs on to the borrower.
NCAFA does not charge an origination fee.
The applicant will pay the cost of loan closing which may include attorney fees, title insurance premiums, recording fees and hazard insurance.