Land Loan #4


5/1 ARM

6.10% at 1.5 points

4.973% APR (Annual Percentage Rate)

The initial interest rate is fixed 5 years. It then adjusts annually for the next 20 years to a margin 2.50% over the 1 year Farm Credit System Funding Cost Index. 25 year amortization. No pre-payment penalty. Maximum loan amount $300,000. (Call for pricing on loan amounts over $300,000.) Maximum loan-to-value 75% for purchases or rate and term refinances. No cashout. (Call for cashout pricing on agricultural land in California only)

This loan is for essentially vacant rural/agricultural land. Barns and outbuildings OK, but no residences currently in place. No acreage limit. The property needs:

1) electricity at the lot line, or the cost to bring it there may be subtracted from the loan amount

2) to not be inside the city limits of any town of 2500 or more population

3) the borrowers to state that they intend to build a residence on the property at some point in the future

4) the borrowers to state they intend to generate at least $500 per year in some type of agricultural product at some point in the future.

APR calculated using $300,000 loan amount.