Rural, Farm, Ranch, Agriculture use property
    (Part Time & Full Time use o.k.)

• Farm loan
  • Row crop – corn, soybeans, wheat, barley, cotton, tobacco, rice, peanuts
  • Ranches – livestock, alfalfa hay, CRP ground
    • Horse farms that include boarding, training or breeding operations
  • Livestock – beef cattle, dairy cattle, sheep
  • Integrator contracts – swine, turkeys, broilers, breeders, layers
  • Permanent plantings– tree fruit, nuts, citrus, grapes, berries
  • Timber – hardwood, pine
  • Aquaculture – prawns, salmon, trout
    
• Agriculture use (Leased Pasture Grazing or Crop Land, Mineral Right Leasing).
• Rural Home Loans and Property (Land Purchase grerater than 5 acres)
• Rural Home Construction Loans
• Equipment Loans
• Bare Land and Lot Loans
• Operating Loans
• Unique properties: log home, geodesic, berm and other unique forms of housing

No limit on the number of acres we can finance. However, the size and nature of the property may determine which products are available to you.

MTG - Providing a wide range of financial services and loan programs with competitive rates to purchase or refinance real estate with products that are as unique as you, from first-time farmer to established rancher.

Loans to $3,000,000

Loans offered in all Residential Lending States Listed Below This Page

Farm Loans
A farm is determined as an operation generating a minimum of $5,000 in gross farm income (GFI) as filed by a Schedule F of income tax returns; we do have other loan programs that may fit your needs if you do not meet this requirement. If you are currently a full-time farmer, we can loan on bare land and lots that will be used to build a second home

• Gift funds and seller contributions are acceptable as long as you have a minimum of 5% of your own funds invested in the transaction.
• Maximum loan-to-value is 95% for Rural Home Loan purchase or limited cash-out refinance transactions
• 90% for cash-out refinance transactions.

Acreage is not necessarily a factor since parcels as small as 10 acres can generate the minimum GFI when higher value crops such as tree fruit and nuts are in production.

NOTE: Farm programs may be limited if you do not intend to produce some limited farm income

Key Criteria for Eligible Loans (less debt and income ratio)

• Loan-to-value of 70% or less
• Minimum gross farm income of $5,000
• Debt-to-asset percentage of 50% or less
• Purchase transactions require a down payment of  5%
• Gift funds and seller contributions are acceptable as long as you have a minimum of 5% of your own funds invested in the transaction.
• Acceptable credit history and minimum median credit score of 625

Flexibility in the above standards with compensating strengths including Guarantees from Farm Service Agency





A part-time farm (Hobby Farm) is a property that has minimal farming activity or is capable of sustained agricultural activity. Generally, the borrower has sufficient off-farm income to qualify. However, income from the property may be used to qualify.

• For Part-time Farm Loans the property must be either your primary residence or second home.
• As a rule we do not finance rental or investment property. However, in certain circumstances we can finance part-time farm property that is to be rented if you are a full time or part time farmer.
• With the Part-time Farm Loan you may use equity in existing property to purchase additional land. This land does not necessarily have to be contiguous with your existing property. Multiple parcels, contiguous or non-contiguous are eligible even if deeded separately.
• Purchase or limited cash-out refinance limit is 85%
• Cash-out refinance limit is 75%. These limits are reduced as the loan amount increases.
  
  
  
  

NOTE: Part-time Farm loan programs may be limited if the land is not capable of sustained agricultural activity.



Key Criteria for Eligible Loans (less debt and income ratio)

• Loan-to-value of 70% or less
• Minimum gross farm income of $5,000
• Debt-to-asset percentage of 50% or less
• Purchase transactions require a down payment of 15%
• Gift funds and seller contributions are acceptable as long as you have a minimum of 5% of your own funds invested in the transaction.
• Acceptable credit history and minimum median credit score of 625

Flexibility in the above standards with compensating strengths including Guarantees from Farm Service Agency (Farmer Mac)
- Guarantees also available on loans for the 1st-time farmer





Rural Home
A rural home is a primary residence which may or may not include acreage and is located in a rural area or suburban town having a population of 2500 or less.

• Only minimal agricultural activity is permitted.
• Generally, little or no income is derived from the property and farm-type outbuildings contribute no more than 10% of the overall value.

Rural home mortgages
If you own or are purchasing a country home with acreage in a rural community, we have
long-term fixed and adjustable rate loan products including:

• Single-family, owner-occupied, detached residence located on the property
• Manufactured housing (doublewide or larger on a permanent foundation)
• Construction for Permanent financing
• Unique Dwellings (log home, geodesic, berm and other unique forms of housing)
  Acceptable as long as the value can be supported by the appraisal with comparable structures from the same market. If there are comparable structures in the market but they have not sold, the appraiser can use other types of construction with the appropriate adjustment for market acceptance as long as he adequately supports the acceptability of the unique type of structure in the market.
  

Key Criteria for Eligible Rural Home Loans

• Generally limited to properties no larger than 75 to 100 acres
• Minimal or no farm income generated from the property
• Loan-to-value up to 95% with a maximum loan amount of $417,000
• A down payment of 5% of the purchase price will be required.
• Maximum combined loan-to-value 95%
• Dwelling value may not exceed $247,184
  (Dwelling should represent a minimum of 50% of the loan amount)
• Maximum contributory value of farm type outbuildings ( barns, arenas and fencing or permanent plantings) may not exceed 10% of the appraised value

Customer Qualifications (less debt and income ratio)

• Two years verifiable employment and/or stable income
• Minimum credit score of 620 with no mortgage lates in the past 12 months
• Minimum cash reserves equal to two month’s PITI
• Flexibility in the above ratios with compensating factors such as excellent credit, substantial cash reserves or low loan-to-value
  

Manufactured Home Loans
If you own or are purchasing a manufactured home with acreage in a rural community we offer competitive rates and a variety of loan products to meet your financing needs.

Key Criteria for Eligible Loans

• Must meet the general loan program requirements for either the Rural Home Loan or Part-time Farm Loan programs
• Manufactured home must meet the Manufactured Home Construction and Safety Standards established by HUD June 15, 1976
• Must be a doublewide or larger on permanent foundation meeting state and county regulations, with wheels and axles removed
• Must be classified as real property with title surrendered or retired (if not permissible by state law lender must hold original title and UCC filing required)
• Loan amounts up to $1 million
• Maximum loan-to-value of 85% for purchases and limited cash-out refinances and 65% for cash-out refinances (certain Rural Home Loans eligible for up to 95% for purchase only)
• Loan term may not exceed remaining economic life of manufactured home
• Must be typical for the community with comparable sales on the appraisal
  Customer Qualifications
  

Customer Qualifications (less debt and income ratio)

• Two years established employment and/or stable income
• Acceptable 24-month credit history with a minimum credit score of 620
• Must have minimum cash reserves of two months PITI
• Monthly Housing Expense to Gross Income ratio of 28% or less
• Monthly Debt to Gross Income ratio of 36% or less

(Flexibility in the above ratios with compensating factors such as excellent credit, substantial cash reserves or low loan-to-value)

• Log Homes
  • Must meet qualifications for rural home or part-time farm loan program
  • Maximum 30 year terms
  • Minimum credit score 620
  • Maximum LTV 75%
  • Can go 85% LTV with 3 like comps
  • Construction/Permanent Loans available
  • Unique Homes
    
    
• Berm Homes - A berm house is one that is built and then the earth is mounded against the walls and sometimes over the roof.
  
• Geo Dome Homes - A lightweight dome constructed of interlocking polygons.
  • Must meet qualifications for part-time farm program
  • Must have at least 2 like comps
  • Minimum credit score 660
  • Steel Beam Construction - Homes built with interior beams and or joists constructed of steel.

  Must meet qualifications for rural home or part-time farm program

• Steel Buildings: steel/aluminum buildings that have been converted into homes.
  
• Converted Barns: barns that have been converted into homes
  
• Multi-use buildings: buildings where home is attached or part of a building designed for a separate use. For instance a home that is part of or attached to a stable or barn.
  
• Straw/Bale Construction - Interior & Exterior constructed to appear as conventional residential housing.
  • Must meet qualifications for part-time farm program
  • Minimum credit score 660
  • Other Unique Homes
    

Operating Loans - Loan terms are tailored to meet the cash flow requirements of each individual operation. Loans generally written on an annual basis

• Loan proceeds to fund input expenses or the entire cash flow needs
• Term debt payments and family living

Key Criteria for Eligible Loans

• Source of repayment (crops, livestock, other income) generally taken as primary collateral
• Crop insurance required when crops secure the loan
• Must have real estate loan with us or pledge real estate as additional collateral
• Loan amount cannot exceed 65% of projected crop or livestock income

Customer Qualifications

• Above-average management history
• Acceptable 24-month credit history with a minimum credit score of 675
  
  
  
  
  
  

Equipment Loans or Intermediate Financing
Loan proceeds can be used to purchase new equipment or can be used to refinance their equipment line.

Lenders prefer to offer equipment loans to those customers with whom they also have a real estate loan relationship, or to customers pledging real estate as collateral.

Key Criteria for Eligible Loans
Equipment loans can be made for the purchase of capital items or refinance of capital items, Machinery & Equipment.

• Loan to Asset Value cannot exceed 70%
• possible for the 30% customer investment to be paid from the operating loan (OL)
  (It will be if the OL shows the ability to pay in full by maturity date)
• Perfected liens will be taken only on financed capital items
• VIN numbers are to be included on executed documents
• Term of the Loan will not exceed 7 years for new equipment purchases
• 5 year term max for used equipment or the refinance of equipment
• Loan term cannot exceed the useful life and value after normal depreciation of the capital item
• No balloon payment loans

Customer Qualifications

• Above-average management history
• Acceptable 24-month credit history with a minimum credit score of 675

Bare Land and Lot Loans
Financing for bare land/lot purchases or rate and term refinances.
If you’re thinking of building or retiring to your dream home away from the stressful city to the quiet country life, then this program is for you.

There must be the intent to build a primary residence on the property at sometime in the future. When you’re ready to build on the property, MTG has construction/permanent financing available. If you are currently a full-time farmer, we can loan on bare land/lots that will be used to build a second home

Key Criteria for Eligible Loans

• Minimum loan amount $50,000 (may concider as low as $20,000)
• Refinances are for rate and term only
• Maximum loan-to-value is 85% up to 40 acres with 5 to 30 year loan terms
• Maximum loan-to-value is 75% over 40 acres with 5 to 25 year loan terms
• There is no limit on acreage
• Property be used for recreational purposes only if there is the intent to build a single-family primary residence on the property
• Land/Lots must be purchased for the intent of eventual construction of a single- family, owner-occupied, primary residence sometime during the life of the loan.
• Intent to generate a gross farm income of $500 per year required on parcels over $123,500 in value
• Neighborhood covenants cannot restrict agricultural production on land over $123,500 in value
• Must be located in a rural area or town with a population of 2,500 or less
• No seasoning required on down payment funds
• Gift funds can be used as down payment

Customer Qualifications

• Two years established employment and/or stable income
• Acceptable 24 month credit history with minimum credit score of 620
• Monthly Housing Expense to Gross Income ratio of 28% or less
• Monthly Debt to Gross Income ratio of 36% or less. Exceptions to this ratio must meet the following criteria: credit scores above 700; 6 months cash reserves;$4,000 monthly residual income and no delinquency on term debt in the last 12 months.
• Minimum cash reserves equal to two month’s PITI

(Flexibility in above qualifications with compensating factors such as excellent credit, substantial cash reserves or lower loan-to-values )

Construction
If you own or are purchasing land and wish to build a country home in a rural community, we offer competitive rates during the construction phase and a variety of loan products to meet your permanent financing needs.

Key Criteria for Eligible Loans

• Must be eligible for a Rural Home, Part-time Farm or Manufactured Home Loan programs upon completion of construction.
• Six month construction period available upon pre-approval of permanent loan
• Maximum loan-to-value 85%
• Typical contributory value of the dwelling should represent a minimum of 50% of the loan amount for Rural Home or 30% of the appraised value for Part-time Farm
• Interest rate during construction phase prime plus 2.00%
• Origination fee of 1.50% to Lender for construction loan
• Approximately $250.00 per draw fee for construction draws (varies depending on charges from appraiser and title company for inspections, lien waivers, etc.)
• Quarterly interest payments required during construction phase
• Existing equity in land may be used for down payment

Customer Qualifications

• Two years established employment and/or stable income
• Acceptable 24-month credit history with a minimum credit score of 660
• Monthly Housing Expense to Gross Income ratio of 28% or less
• Monthly Debt to Gross Income ratio of 36% or lessv Six months PITI required

(Flexibility in the above ratios with compensating factors such as excellent credit, substantial cash reserves or low loan-to-value)





Stated Program

• We have a reduced doc program up to loan amounts of $250,000.
  • For loan amounts up to $150,000 we require application, bank statements, disclosures, appraisal and title.
  • For loans $150,001 to $250,000 we require the same plus a pay stub and one year of tax returns. We may require 1 year tax returns for loans up to $150,000 on self-employed borrowers.
    
    
    
    
    
    

Reduced Documentation Loan Program For Agricultural Loans And Part-Time Farms

• Fixed or adjustable rate products available.
• Semi-annual or monthly payments.
• Up to 25 year amortization.
• Available for full or part-time farming operations.
• Property may be non-contiguous.
• No requirement for residence on property.
• No limit on Combined Loan-to-Value.
• Available for purchase or refinance transactions.
• Key Criteria for Eligibility
• Maximum Loan-to-value 55%.
• Maximum loan amount $1,000,000.
• Minimum credit score 680 for loan amounts up to $300,000.
• Minimum credit score 700 for loan amount $300,000 and above.