Getting a Farm Loan
Do your loans have pre-payment penalties?
No, none of our loan products have prepayment penalties so you can pay-down or pay-off your loan at any time.
How much does Janus Ag charge if my loan is not approved?
Nothing. We do not believe that we should be compensated unless funds are drawn for your loan.
How long does the loan process take?
Typically loans take 30 to 60 days from when we receive all of your documentation until closing. However, no loan, borrower, or collateral is the same, so appraisals, title work, and credit approvals can occasionally cause the process to take longer. If you are up against a deadline, let us know upfront and with your help we can speed up the process.
What if rates change during the life of the loan?
Most of our loans can be converted to different fixed rate periods on any payment date for a fee of .5% of the loan balance. There are certain restrictions and we need advance notice, but this unique program gives you the flexibility to take advantage of shorter fixed rate periods when rates are low and longer, less risky, fixed periods when rates are going up.
What if my credit score is below 680?
We try to find ways to help borrowers with all credit scores. A variety of factors affect your credit score including but not limited to late payments, high balances, and too many inquiries. In some cases, quickly raising your score may be possible. We use analysis tools that can project the ability of your score to improve and may be able to offer suggestions to improve your score or adjust the structure of the proposed loan.
Can I close in the name of a business entity or trust?
Yes, you may close your loan in the name of your business or trust, however you will also need to be a signer and personally guarantee the loan.
What is the maximum loan-to-value( LTV) ratio for your loans?
For tillable farm ground and improved pasture the max LTV is 70% for most states and 55% for pasture/grazing ground.
Can I finance an agricultural facility?
Yes, we offer financing programs for ag facilities such as feedlots, poultry barns, hog barns, grain facilities, packing plants, and wineries. We can loan up to 70% of the value of the facility, depending on the type of operation. Amortization periods for facilities may be less than on farmland.
What type of appraisal do I need?
Our loan approval process requires a commercial farm appraisal. This is a comprehensive, three approach, appraisal with specific requirements. We will use an appraiser who is familiar with your region and knows farm appraisals. We will handle ordering the appraisal to make sure it will meet the requirements.
Do you have an office in my area?
Janus Ag is based just outside of Denver, CO and while we may not have an office in your area, we will use an appraiser in your area and a title company of your choosing. Being a nationwide lender we have a local presence where it matters and the efficiency and value of centralized processing.
What is an equity LOC?
An equity Line-Of-Credit is an operating line that can be drawn on to fund your operations and is secured by the equity you have in your land. Unlike most LOCs where you need to go through the approval process every year, our operating lines are valid for 10 years with no annual obligation to pay off the balance.
Do I have to pay off the balance of my LOC every year?
No, our LOC, once approved, is valid for 10 years with no requirement to be repaid annually. The balance converts to a 20 year mortgage at the end of the draw period.
Can I obtain a loan for a hobby farm or part time farm?
We can finance rural estates and hobby farms up to 70% of value, but the property must be capable of generating a minimum of $10000 per year of agricultural income-that is hay or cash crop sales, horse boarding fees, or other income that would be agricultural. This number is based on either historical tax returns or the opinion of an agricultural appraiser. The highest and best use of the property must also be agricultural or agricultural/residential.
Can I obtain a loan on land that is in the Williamson Act or has a conservation easement on it?
Yes we finance these properties based on the remaining ag value.
- Our loans do not have pre-payments penalties
- There is no charge if your loan is not approved
- You can finance up to 70% of the property value, including facilities
- Our loan approval process requires a commercial farm appraisal