Need advice about purchasing a farm

[Derrick Damrow]

I could really use some help with this.  There is an 80 acre farm for sale which is about 65 tillable acres, not irrigated.  It's in se Nebraska.  I can get an FSA loan with 5% down, 45% garaunteed and 50% commercial loan.  The loan rate on all of it would average 3.25%.  They want  between $2500-$2700 an acre.  what do you think about the terms and would anyone else take this deal.  Very slight possibility that it could have water under it.  Wouldn't know until after it was bought.

[David Ernst]

Definitely need to talk to someone from Se Nebraska on this one.

[Mike J]

What county are you talking? I'm guessing you're more south than east? I don't know a whole lot about the loan side of things, but it sounds like you're from an area that uses at least some irrigation. Depending on the soil and everything that doesn't sound like too bad of a price compared to some of the latest sales I've seen in the area.

[Brett Rausch]

I don't know much about about land pricing in your area but definetly go with the fsa loan. Yes there is alot of paper work involved with this loan but a cheap rate is worth some paper work time. I just closed on a 80 acre piece on July 2 with that same loan. I'm averaging 3.7%.

[Brett Rausch]

The same items a bank wants plus more. Tax returns, paychecks if you have off farm income, finacial histories and crop production histories., etc... Financial histories for both farming and personal. I know it seems like alot but when u go to a bank they say you qualify for this much. Then leave it up to you to figure out wether you can pay or not. FSA actually looks at everything, and i mean everything which really helps you figure out if you can make it or not.

[Brett Rausch]

However there are some restrictions to this program.. You can not have been farming for more than ten years and you can only own so many acres right now.

[Shawn]

i have got an fsa loan. I am from central NE. they needed to know EVERY dollar i made and spent in the last 3 years. mine is locked in at 4.875% tho... The .5 credit classes from Penn State are TERRIBLE tho. I had to complete two 3 ring binders. I broke down and called the professor that teaches the class (Dr. Greg something) Had to be farming or ranching for at least a certain number of years.

I didn't have to come up with anything down tho... 100% financing.