Does a Revolving Line of Credit Loan (RLOC) meet my needs?

• Do you need to use the equity in your farm to purchase
  more farm land?
• Will you need all of the loan proceeds at once, or over
  several months?
• Do you need financing to develop raw land
  for permanent plantings?

If you answered yes to any of these questions, then a Farmer Mac Farm Real Estate RLOC may be for you.
Farm Real Estate Revolving Line of Credit 

Guidelines:

• Loan-to-value up to 50% of bare land value
• Minimum debt coverage of 1.35:1
• Debt-to-asset ratio maximum of 50%
• Current ratio minimum of 1.25:1
• Minimum 680 credit score
• Minimum Loan size of $50,000
• Collateral for the loan is first lien on real estate

Features:

• Borrowing power up to 50% of your bare land value
• A 5-year interest-only draw period option, followed by a 15, 20, or 25-year amortization
• The option to renew the 5-year interest-only draw period for an additional 5 year period
• A 10-year interest-only draw period option*, followed by a 10, 15, or 20-year amortization
• The maximum term of the loan including the draw period is 30 years
• Option to convert to other loan products
• Unlimited draws, $2,500 minimum
• Semi-annual interest payments during the draw period
• Tax-deductible mortgage interest**

*Farmer Mac will review at five years from point of closing. If review is unacceptable, the remaining draw period may be terminated and the outstanding balance amortized over the remaining term. **Consult your tax advisor regarding tax-deductibility of interest. Loan availability subject to borrower meeting eligibility and credit guidelines. Terms subject to change.