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Loan application is made directly to BND and should include information sufficient for BND to properly evaluate the loan request.

  • A completed BND loan application with the necessary documents
  • Borrower’s three previous years of financial statements and tax returns
  • FSA aerial photos of the subject property
  • A narrative explaining the loan request, farming experience and management ability of the borrower.
  • Current, qualified appraisal of the real estate which demonstrates that a loan meets BND’s collateral requirements. The cost of this appraisal is paid by the borrower.

BND may require additional information depending upon the circumstances of the loan and the borrower.

BND follows its loan review procedures in evaluating the loan. After the application has been approved and the commitment given, the borrower has up to 180 days to draw the funds. If the funds have not been drawn within the commitment period, BND may cancel the commitment without further notice to the borrower.

BND Loan Closing Steps

This is one of two BND ag lending programs offered directly to North Dakota residents. If you have any questions, contact us or call (701) 328-5801.

Apply Now for the Beginning Farmer Real Estate Loan

To ensure proper functionality, BND forms MUST be downloaded and then opened with your system’s PDF application. Click here for download instructions.

If you are not able to access a PDF, please contact us for assistance.

  • Applicant must be a North Dakota resident
  • Applicant’s net worth, including that of dependents and spouse, of less than $1,500,000
  • Applicant’s principal occupation is or will be the production of an agricultural commodity on a family farm
  • Applicant may not have previously owned any substantial farmland greater than 30% of the average farm size (PDF) in the county where the parcel is located

Proceeds may be used to purchase agricultural real estate.

Funding will not exceed a $1,200,000 lifetime cap per borrower.

Interest rate:

  • The interest rate is fixed at 1.00% below BND’s base rate for ten years. For the remaining period of the loan, interest is variable and adjusted equal to BND’s base rate; or
  • The interest rate fixed at 1.00% below BND’s  base rate for the first five years with a maximum of 6.00% per year. For the second five years of the loan, interest is variable at 1.00% below BND’s base rate at that time, adjusted annually on the anniversary date. For the remaining period of the loan, interest is variable and adjusted equal to BND’s base rate.

Fees:

All costs incurred by BND in connection with a loan application and a loan closing must be paid by the borrower.

This is a direct loan with BND.

BND may lend up to 75% of the appraised value of the real estate to be pledged as collateral. A first mortgage is required on the property being used as collateral. In addition, BND requires an assignment of rents.

Upon approval of the loan, BND will require:

  • Hazard insurance on all buildings used as collateral naming BND as “loss payee.”
  • Flood insurance may be required if deemed to be located in a flood zone
  • Current qualified appraisal of the real estate which demonstrates that the loan meets BND’s collateral requirement. The cost of this appraisal is paid by the borrower. This appraisal should not be ordered until requested by BND.

The loan term may not exceed thirty years. Annual amortized payments are required.