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Tractor Talk Discussion Forum

Real estate loans, Banks vs Farm credit services

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Larry NE IL

12-02-2003 11:39:34




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I've been looking at some farms in N central IL(put in a few posts on one, thanx for the help!)
In my excavating business, borrowing is no stranger to me and I either use my bank or or dealer financing. Any one out there use Farm Credit Services? I don't know anything about them. Are their rates competitive?, or should I just stick to my bank? Thanx, Larry




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Phil in MS

12-03-2003 06:38:14




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 Re: Real estate loans, Banks vs Farm credit servic in reply to Larry NE IL, 12-02-2003 11:39:34  
Lending institutions are a lot like tractors, trucks and equipment. Some like red, blue or green. Some like Ford, Chevy or Dodge. Pesonalities aside, rates and terms that work for you are what's important. Sometimes the bank may win, sometimes the land bank may win. Location and pesonality also figure in the mix. So I'm not sure that is wise to write something off until you have actual heard the deal.IMHO.

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Old and Smarter

12-02-2003 20:51:11




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 Re: Real estate loans, Banks vs Farm credit servic in reply to Larry NE IL, 12-02-2003 11:39:34  
Larry, If times get hard again, see how FCS treats you then!! But then maybe that was just the local office. I switched over to our local owned bank and couldn't be happier. Old and much wiser.



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Ben in KY

12-03-2003 07:34:09




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 Re: Re: Real estate loans, Banks vs Farm credit se in reply to Old and Smarter, 12-02-2003 20:51:11  
Old, Good advise if you have any locally owned banks left in your area. I think we are soon only going to have about a dozen banks in the US :(



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fred

12-02-2003 20:24:11




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 Re: Real estate loans, Banks vs Farm credit servic in reply to Larry NE IL, 12-02-2003 11:39:34  
I just borrowed money from the land bank for my place & had no problem. They were great too deal with. You have to buy stock...1000 dollar maximum but heck you get that back. They also do the appraisal & all. Variable rate was 4.25 %. Had to put down 20 % though.



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Thanx for the info guys

12-02-2003 19:31:39




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 Re: Real estate loans, Banks vs Farm credit servic in reply to Larry NE IL, 12-02-2003 11:39:34  
I appreciate your input, some pro's, some con's.
It almost sounds like a lot depends the office your dealing with. Thanx for the help, Larry



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Brad in VA

12-02-2003 17:25:15




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 Re: Real estate loans, Banks vs Farm credit servic in reply to Larry NE IL, 12-02-2003 11:39:34  
I have delt with Farm Credit and have good dealings with them as far as payment and so forth. They will either take monthly, bi monthly or yearly payments. Whatever suits you best. I think the biggest problem most people have with them VS. their bank is that you deal with your bank alot and see them often but dont with the farm credit people. I call my rep. often and keep him updated on the assets of the farm and how it is doing. I can write a "bad check" and call them and it is covered. But the only draw back I have is like if 4 people are ahead of me with $1,000,000 loans then they get priority. As far as the having to buy stock thing goes for my current 15,000 loan I had to buy $250 worth of stock but I get a $75 to $100 divendend check every year. It all works out. I would reccomend at least talking to them. My 2 cents worth. With interest HA HA HA

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Michael

12-02-2003 17:02:02




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 Re: Real estate loans, Banks vs Farm credit servic in reply to Larry NE IL, 12-02-2003 11:39:34  
I used FCSA to finance my 280 acre farm and had good luck. They were the only one willing to go 25 years fixed--most of the local banks will only go 5-7 balloon. Who wants to re-fi every 5 years?

I wanted a low rate while rates were low. As it is, I got a 6.95% which again, was lower than the 7.5% fixed that most of the local banks wanted to charge. Most local banks wanted 7.5% variable.

Most of the local banks also gave me a much harder time about cash-flow. My farm is a hobby farm and let's face it, 280 acres with 135 tillable isn't going to cash-flow very well, now is it?

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Shane

12-02-2003 16:14:58




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 Re: Real estate loans, Banks vs Farm credit servic in reply to Larry NE IL, 12-02-2003 11:39:34  
We used to deal with FCS but they got real strict and took forever to get any kind of paperwork done. Had a few friends try to get a loan from them lately and came home rather unhappy. I would stay away from them. Then again this is only my opinion <----lawyer repeller! ha ha



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John (C-IL)

12-02-2003 12:07:48




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 Re: Real estate loans, Banks vs Farm credit servic in reply to Larry NE IL, 12-02-2003 11:39:34  
If you have a good relationship with your bank and they are willing to cover your needs stay with them. I have talked to FCS a few times and they always end up frustrating me because of their stock requirements and "you aren't big enough" attitude. When I bought my farm I had a substantial down payment and they weren't willing to loan me $40,000 to finish the deal because it "wasn't worth their while". I called my bank and got the loan with a phone call and a financial statement.

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kyhayman

12-02-2003 11:46:31




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 Re: Real estate loans, Banks vs Farm credit servic in reply to Larry NE IL, 12-02-2003 11:39:34  
I've tried to borrow from them a few times. It seems to me that while the rates are close their terms are pretty strict and I like more flexibility. I'd rather borrow on a demand or annual note.



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