- Where can FCS Financial finance property?
FCS Financial is a member of the Farm Credit System. Each association is independently chartered and managed. FCS Financial is chartered to finance property in 102 Missouri counties. We have 21 local offices to serve our member-owners.
- Do you finance homes on acreage or bare land?
Yes, we can finance bare land or a home on acreage. We also offer a uniquely structured home construction loan.
- How is a land loan evaluated?
FCS Financial reviews five credit factors when determining if an applicant is a viable credit risk. Those five factors are referred to as the 5 C’s of Credit. They are:
We have a YouTube playlist that explains each of these factors as well as the linked articles.
- What information is needed to apply for an FCS Financial loan?
The bare minimum of information that we require is the three previous years' taxes, a copy of the sales contract, a balance sheet, which is a list of your debts and assets, and a copy of bank statements. As you move through the application process, depending on the complexity of the loan, you may be asked for more information that’s listed in this loan application checklist.
- What is the minimum down payment needed for an FCS Financial land loan?
There are several factors that determine a down payment. It’s not a simple cut-and-dry answer. The factors considered are:
- Loan purpose – the type of property purchased such as a rural primary residence or a row crop farm will impact the required down payment
- Frequency of payment -monthly, quarterly, or annual payment
- Collateral – are you pledging another piece of the property toward this new property
If you want to play with different scenarios, we have a loan calculator on our website that allows you to input different down payments options to determine an approximate loan payment.
- What type of collateral can be used toward the down payment?
A real estate purchase must be secured with another piece of real estate that the borrower owns free and clear. If the borrower fails to honor the terms of the loan by not making payments, then the collateral can serve as part of the repayment for the loan.
Using Collateral to Purchase Land provides an example of how real estate can be used to secure a loan.
- Do you offer a fixed interest rate?
Yes, we offer fixed, variable and adjustable interest rates. A loan officer will work with you to determine which option is the best for your situation. The benefits of a fixed rate video explains why a borrower might prefer a fixed rate.
