Established Farmer Real Estate Loan

The Established Farmer Real Estate Loan assists a farmer or rancher with financing of agricultural purposes.

The borrower must be a North Dakota resident.

Proceeds must be used for agricultural purposes.

The maximum loan amount to any one borrower is $3,000,000.

Interest rate: The interest rate is market rate of interest and may be fixed or variable. Variable rate adjustments are limited to a 6% increase over the original rate during the term of the loan.  See current rates.

Fees: The borrower must pay all costs incurred by BND related to the loan application and loan closing. Upon acceptance of BND’s commitment, a non-refundable $500 origination fee is due prior to funding.

BND may lend up to 65 percent of the appraised value of the real estate being pledged as collateral. It requires a first mortgage on the property that is being used as collateral. In addition, BND requires an assignment of rents.

Upon approval of the loan, BND will require:

  • Hazard insurance on all improvement 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 is for a maximum of 25 years.

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

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 90 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 provided directly to North Dakota residents. If you have any questions, contact us or call 701.328.5795.