AgEquity Loans

Ag Equity Loans are a revolving line of credit loan secured by a 1st mortgage on real estate with a revolving draw period of 5 or 10 years and a total term of up to 30 years.

Key Criteria

  • Semi-annual interest due on January 1st and July 1st during the draw periods
  • Structured on 5, 10, 15, 20, or 25 year amortizations thereafter
  • Variable rate based on 30 day Libor
  • Convertible to available fixed or adjustable rate products during or after the expiration of the draw period or draw period may be extended. (If converted during the draw period, revolving feature is eliminated)
  • Unlimited number of draws and repayments during the draw period
  • Customer certifies loan is a business loan made for business purposes
  • Minimum loan amount $50,000
  • If property includes improvements, the contributory value of such will be deducted from the appraised value
  • Irrigation equipment may be included in property value if properly secured

Program Options

Option 1: 5 year draw period
  • Loan term options are 15, 20, 25, or 30 years
  • Draw period of 5 years
  • At end of draw period, the outstanding principal is amortized over the remaining term 10, 15, 20 or 25 years
  • Interest only payments made during draw period
Option 2: 10 year draw period
  • Loan term options are 15, 20, 25, or 30 years
  • Draw period of 10 years
  • At end of draw period, the outstanding principal is amortized over the remaining term 10, 15 or 20 years
  • Interest only payments made during draw period

Borrower Qualifications

  • Debt to asset ratio < 50%
  • Total debt coverage > 1.35:1
  • Current ratio > 1.00:1
  • Credit score > 680
  • Loan to value Option 1 <50%
  • Loan to value Option 2 <45%
  • Property debt coverage Option 1 >.80:1
  • Property debt coverage Option 2 >1.00:1 

For More Information Contact:

Agri-One Financial
303-773-3545
steve@agrionefinancial.com