FSA Loan Program Tips?

[Farmerjon]

I got tired of the annual visits, machine shed checks (contents) by anyone the county board wanted to allow do the visitations. I wasn't doing anything wrong, but hate being checked on like a criminal. Borrowed from the bank to pay them off, never regretted that decision.

[TexasBred]

I got tired of the annual visits, machine shed checks (contents) by anyone the county board wanted to allow do the visitations. I wasn't doing anything wrong, but hate being checked on like a criminal. Borrowed from the bank to pay them off, never regretted that decision.

All don't do it but all usually have some sort of clause within the papework allowing them to make onsite inspections from time to time to verify their collateral is still there. A nice visit at a time that fits into your schedule would be considerate of them tho.

[hillbillycwo]

I have considered a FSA loan for my land but now I am not so sure. Someone quoted they can call the note due early. How can they do that unless you are defaulting on the loan?

[ga.prime]

I have considered a FSA loan for my land but now I am not so sure. Someone quoted they can call the note due early. How can they do that unless you are defaulting on the loan?

You don't maintain conditions that you agreed to when you were given the loan.

[Engler]

As an evil banker I can tell you that the FSA loans aren't that bad. Find someone (lender) who has done them before and they should be able to walk you through it. Yes there is a ton of extra paper work and there is the pita of the annual visits and having to send them all the paperwork to keep their files current every year....

I've had 10 or more people in the last 3 years that we have done gov't loans with that we wouldn't have been able to do the deal otherwise, and that's just me not counting the other 4 lenders in the bank. Most of those were farmers that wanted to buy a piece of land, but didn't have the downpayment even though it still cashflowed or young people getting started that needed the kicker on the interest.

As was stated earlier, they are there for people that wouldn't be able to get normal financing from the bank. Would you rather go through the BS of the guaranteed loan paperwork vs calling the auctioner to line stuff up if you have a train wreck or watch the farm that is across the road sell and not have a chance at it.

[bigbull338]

sounds like your talking about the gurtee gov loan.in wich the gov covers the loan if the bank will loan the money,at 90% w/10% down.an dont think thats considered an FSA loan but im not sure.

[Engler]

Different sides of the same coin. Several programs run by the same crew(FSA): there is the guar loan where if it goes bad the FSA will cover x% of the loss and the bank still stands a hit, then there are the grain bin/hay shed loans that are through the FSA, and there are also the direct loans where the FSA loans the money for op, breeding stock land to the borrower. You also get into the EQUIP programs with their grants and loans, and you want to talk about a bunch of garbage, well...

[TennesseeTuxedo]

Different animal but as a mortgage banker my number one program is the USDA 100% rural housing loan. It's strictly for a home on a small piece of ground and they frown upon any agricultural structures on the site but for the person who qualifies it's the best loan going bar none.

[Lon]

I am actually in the process right now of working of getting a loan through FSA for buying cattle. There is alot more paper work than what the bank wanted when i bought my haytruck but the interest is alot lower. I think it is a direct loan not a loan garuntee though. I think the money saved in interest it worth the hassle of paperwork but at the same time i have heard people tell me not to do it because they had a bad experiance. I only see a bad experience if you dont make a payment though am i right or no?

[Stocker Steve]

For some reason, and I believe it has to do with chicken farmers, ours says you have to pour eight inches of concrete. For a 60 x 100 hay barn this meant 1778 yards of concrete! For HAY! Needless to say, no one around me bit the hook on this one except maybe a chicken producer but it seems they got some free money for theirs so I don't know what happened.

How much hay does it take to overwinter a chicken? Could be a way to really cut back on expense.

[xbred]

you have to pour eight inches of concrete. For a 60 x 100 hay barn this meant 1778 yards of concrete! For HAY! Needless to say, no one around me bit the hook on this one except maybe a chicken producer but it seems they got some free money for theirs so I don't know what happened.

60x100=6000 sq. ft.=148.148 cu. yds
(60*100*.67)/27=148

[Jogeephus]

you have to pour eight inches of concrete. For a 60 x 100 hay barn this meant 1778 yards of concrete! For HAY! Needless to say, no one around me bit the hook on this one except maybe a chicken producer but it seems they got some free money for theirs so I don't know what happened.

60x100=6000 sq. ft.=148.148 cu. yds
(60*100*.67)/27=148

OOOPs, your right but I meant to type 178.(footers and such increase your figure) In other words, $17,800 dollars which is more than the barn costs to build. In other words, this would more than doubled the cost of the barn for no good reason.

[JSCATTLE]

I built a steel framed 40 x 120 for 18 k built it my self though ... Do yall have a farm credit bank ? I use agri land and the intrest is about 5 percent right now on cattle and equipment barns etc....

[TexasBred]

I am actually in the process right now of working of getting a loan through FSA for buying cattle. There is alot more paper work than what the bank wanted when i bought my haytruck but the interest is alot lower. I think it is a direct loan not a loan garuntee though. I think the money saved in interest it worth the hassle of paperwork but at the same time i have heard people tell me not to do it because they had a bad experiance. I only see a bad experience if you dont make a payment though am i right or no?

lon most papers relative to a mortgage or any other kind of loan have absolutely zero in them that is in your favor but as long as you make one payment a money per the contract you have nothing to fear.

[Massey135]

My experience with the FSA has been as expected with anything in the public sector. Literally zero sense of urgency on behalf of any of the employees. Though the process is sloooow and the employees are middle school educated, the 7 yr one and three quarter percent , 1.75%, IR on my operating loans keeps me coming back. No private bank can compete with the rates the FSA offers. My annual pmts are 3k per 20k borrowed. The only down fall is that they do not offer a line of credit. All borrowed funds starts accruing interest as soon as the funds are deposited.