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Farms & Real Estate Loans

GMC offers loan products with competitive rates to purchase or refinance real estate. Farm real estate loans can have extended maturities with fixed or adjustable term rates. Loan approval is normally based upon our underwriting standards as shown on this page. From the first-time farmer or rancher in North Carolina to the established farmer or rancher in California, GMC has the loan product to fit your needs.

Key Criteria for Eligible Loans

• Loan-to-value of 70% or less
• Minimum gross farm income of $5,000
• Qualifying farming operations
  • Row crop – corn, soybeans, wheat, barley, cotton, tobacco, rice, peanuts
  • Ranches – livestock, alfalfa hay, CRP ground
  • 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

Customer Qualifications

• Debt-to-asset percentage of 50% or less
  Current ratio of at least 1:1
• Cash available to service debt of 1.25:1 or better
• Acceptable credit history and minimum median credit score of 625
• Flexibility in the above standards with compensating strengths including Guarantees from Farm Service Agency
  
  - Guarantees also available on loans for the 1st-time farmer

   

  • Two years established employment and/or stable income
  • Minimum credit score of 620 with no mortgage lates in the past 12 months
  • Monthly Housing Expense to Gross Income ratio of 28% or less
  • Monthly Debt to Gross Income ratio of 36% or less
  • 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

Loan Products

• Adjustable rates: 3-month, 6-month, 1-year, 3-year, 5-year, 7-year, 10-year
• Fixed rates: 7-year, 10-year, 15-year, 20-year, 25-year, and 30-year
• Pricing: Index based upon LIBOR, Treasuries, Farm Credit Bank Funding Corporation bonds, and Prime Rate plus an established margin
• Prepayment options: open prepayment, partial open prepayment, full yield maintenance
   

Key Criteria for Eligible Loans

• Single-family, owner-occupied, detached primary residence located on the property
• Loan-to-value up to 95% with a maximum loan amount of $417,000
• Maximum combined loan-to-value 95% 
• Dwelling value may not exceed $247,184
• Private mortgage insurance required with loan-to-value greater than 80%
• Additional pricing adjustment of .50% for cash-out LTV 70.01% to 80%

• Additional pricing adjustment of .75% for cash-out LTV 80.01% to 90%
• Typical contributory value of the dwelling should represent a minimum of 50% of the loan amount.
•  Generally limited to properties no larger than 75 to 100 acres. Minimal or no farm income generated from the property
• Maximum contributory value of farm type outbuildings, fixtures such as barns, arenas and fencing or permanent plantings may not exceed 10% of the appraised value