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.
NCAFA Series I Farm Real Estate loans can be made to individuals, farming corporations, partnerships or joint operations. The individual or entity must:
- Have sufficient education, training, or experience in managing and operating a farm or ranch to demonstrate the managerial ability needed to succeed in farming.
- Be a citizen(s) of the United States (or legal resident alien) and maintain a farming operation in North Carolina.
- Have the legal capacity to incur the obligations of the loan.
- Be unable to obtain credit elsewhere without an FSA guarantee.
- Have an acceptable credit history.
- Be the owner-operator of a family farm after the loan is closed.
The purposes of NCAFA's Series I Farm Real Estate loans may include the following:
- To buy, improve or enlarge farms;
- Construction, improvement or repair of farm homes and service buildings;
- Improvement of on-farm water supplies;
- Installation of pollution control;
- Soil and water conservation measures to develop, conserve or make proper use of land and water resources, irrigation systems, drainage improvements;
- Refinancing debts;
- Establishing or improving forests.
- Providing for production of fish under controlled conditions.
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.
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.
NCAFA's Series I Farm Real Estate loans can be made up to $2,037,000.00 (amount varies annually based on Farm Service Agency guarantee limits).
A $150 application fee is required when the application is submitted. At closing, a fee of 1/8th of 1% of the loan amount is required. 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.