Farm Real Estate Loan Guarantee Program

Borrowers may purchase farm real estate or restructure farm real estate loans in North Dakota under this program.

This loan assists farmers with purchasing or restructuring agricultural real estate loans by providing a financial institution with a 75 percent guarantee of total loans that do not exceed $400,000 to an individual borrower.

The borrower must be a North Dakota resident.

Proceeds may be used to guarantee a loan made by the lead lender to a farmer or rancher. The land must be located in North Dakota.

BND may guarantee up to 75 percent of the amount of principal due to the lender. The total of agricultural real estate loans to be guaranteed may not exceed $400,000 to an individual borrower. BND may approve a guarantee on a loan up to 75 percent of the certified appraised value of the agricultural real estate.

If used in conjunction with other BND programs, BND may have no more than $8,000,000 in outstanding loan guarantees under the farm real estate loan guarantee program.

Interest rate: The guarantee fee may be included in the loan or in the rate charged by the lender. The lender may charge an interest rate not to exceed BND’s base rate plus 2.00% on variable rate loans and 3.50% over the corresponding Federal Home Loan Advance Rate on fixed rate loans.

Fees: The fee is .50% per year or a onetime fee of 1.50% of the guaranteed portion. The guarantee fee may be included in the loan or in the rate charged by the lender.

BND uses its normal credit standards in reviewing the loan.

First mortgage on farm real estate located in North Dakota: 75% of appraised value.

The lead lender is responsible for submitting a Farm Real Estate Loan Guarantee Lender Payment History Form to BND annually.

Borrower must work with a local lender to submit the loan application. Lead lender is responsible for servicing the loan.

The guarantee term may not exceed five years.

Bank Participation Loan Application (PDF)
Farm Real Estate Loan Guarantee Lender Payment History (PDF)

It is recommended you use Internet Explorer 11 or above to download these forms. If you are not able to access a PDF, please contact us for assistance.

BND offers this loan by partnering with local lenders. To apply, contact your lender.

If you have any questions, contact us or call 701.328.5795.