An official website of the State of North Dakota
The Established Farmer Real Estate Loan assists a farmer or rancher with financing of agricultural purposes.
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 necessary documents
- Borrower’s three previous years of financial statements and tax returns
- FSA aerial photos of the subject property
- 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.
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) 328-5801.
- Farm Loan Application (PDF)
- Balance Sheet (PDF)
- Income & Expense Statement (PDF)
- Planned Farm Income (PDF)
- Crop Production History (PDF)
- Livestock Production History (PDF)
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.
The borrower must be a North Dakota resident.
Proceeds must be used for agricultural purposes.
The maximum loan amount to any one borrower is $6,000,000.
Interest rate:
The interest rate is a market rate of interest and may be fixed or variable.
| Established Farmer Real Estate Loan Rate Options | |
| Rate Index | Term |
|---|---|
| Quarterly Adj. | 25 Years |
| Annual Adj. | 25 Years |
| 3-Year Adj. | 25 Years |
| 5-Year Adj. | 25 Years |
| 7-Year Adj. | 25 Years |
| 10-Year Fixed | 10 Years |
| 10-Year Adj. | 20 Years |
| 10-Year Adj. | 25 Years |
| 25-Year Fixed | 25 Years |
| Established Farmer Real Estate Loan Rate Options | |
| Rate Index | Quarterly Adj. |
|---|---|
| Term | 25 Years |
| Rate Index | Annual Adj. |
| Term | 25 Years |
| Rate Index | 3-Year Adj. |
| Term | 25 Years |
| Rate Index | 5-Year Adj. |
| Term | 25 Years |
| Rate Index | 7-Year Adj. |
| Term | 25 Years |
| Rate Index | 10-Year Fixed |
| Term | 10 Years |
| Rate Index | 10-Year Adj. |
| Term | 20 Years |
| Rate Index | 10-Year Adj. |
| Term | 25 Years |
| Rate Index | 25-Year Fixed |
| Term | 25 Years |
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.
This is a direct loan with BND.
BND may lend up to 65% 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 twenty five years.