Business Banking - Ag Real Estate Financing

Purchasing ag real estate is not a decision to be taken lightly. However, when you are ready to talk about purchasing farm property, Shelby County State Bank has a variety of new, ?exible terms and rates to ease your purchase process.

An alliance between SCSB and the American Bankers Association enables us to offer new loan products that help finance existing or new ag mortgage loans at a discounted rate to our customers. Along with those discounted rates are a variety of new options including rates that are fixed for 10, 15 and 20 years.

Who is eligible?
These new loans are designed to benefit those who are US citizens involved in agriculture and agribusiness as well as farmers and ranchers.

What is eligible?
These loans can be used for a purchase, or commit to purchase, a first mortgage on ag real estate. It can be a single-family residence, primary or second home. Ag production must be feasible and intended. There is no minimum or maximum acreage requirement. However, if the property is less than five acres, $5000 minimum annual gross sales of agricultural products from the property must be documented. The property can also include facilities used in storage, processing and marketing of agricultural products.

What loan options are available?
Shelby County State Bank now offers a variety of ag real estate loan products to suit your individual situation including:

Adjustable Rate mortgages - Fixed interest rates for the initial loan period, then new rates adjusted to the new rate environment.

Variable Rate Mortgages - The 5-year variable rate mortgage has a fixed interest rate for the initial 5-year period. Then the interest rate adjusts for two additional 5-year periods.

Fixed Rate Mortgages - There are 10-year, 15-year and 20-year fixed rate loan options available. Payment frequency options include monthly, semi-annual or annual payments. By offering these ?exible loan terms and competitive rates, SCSB can provide those involved in ag a risk management tool to balance short-term borrowings with a fixed-rate mortgage. Contact a loan offi cer at any SCSB location for more details as to how this new loan program can give you the best deal on ag real estate purchases.