Yesterday's Tractor Co. Shop Now
   Allis Chalmers Case Farmall IH Ford 8N,9N,2N Ford
   Ferguson John Deere Massey Ferguson Minn. Moline Oliver
Classified Ads
Photo Ads
Tractor Parts

Discussion Forums
Project Journals
Tractor Town
Your Stories
Show & Pull Guide
Events Calendar
Hauling Schedule

Tractor Photos
Implement Photos
Vintage Photos
Help Identify
Parts & Pieces
Stuck & Troubled
Vintage Ads
Community Album
Photo Ad Archives

Research & Info
Tractor Registry
Tip of the Day
Safety Cartoons
Tractor Values
Serial Numbers
Tune-Up Guide
Paint Codes
List Prices
Production Nbrs
Tune-Up Specs
Torque Values
3-Point Specs

Tractor Games
Just For Kids
Virtual Show
Museum Guide
Memorial Page
Feedback Form

Yesterday's Tractors Facebook Page

Related Sites
Tractor Shed
Ford 8N/9N Club
Today's Tractors
Garden Tractors
Classic Trucks
Kountry Life
Tractor Talk Discussion Forum

Re: crash course on land buying (long post)

[Show Entire Topic]  

Welcome Guest, Log in or Register
Author  [Modern View]

12-11-2012 20:32:16

Report to Moderator

Whats the first question they will all ask ? How much money do you have sir and whats your credit rating ?

[Log in to Reply]   [No Email]

12-11-2012 21:21:18

Report to Moderator
 Re: crash course on land buying (long post) in reply to Thesmoothedeere, 12-11-2012 20:32:16  
When I bought my farm 10 years ago, I learned the hard way that financing can be tricky.

I talked to many different banks to get pre-approved for financing and to find the best rate and term. At the time, conventional mortgages were in the 5.5 to 6 percent range, and I naturally assumed I could get a mortgage with a similar low rate. How wrong I was! Most of the small local banks I spoke with said they would only write loans in their county or adjacent county, which limited my chances for shopping around for a good loan. Because I was trying to purchase more than 20 acres, they said I couldn’t have a conventional mortgage--I would have to get an agricultural loan.

The banks required at least 30 percent down payment on a five or “maybe” seven year balloon loan with a 7 to 7.5 percent interest rate. It didn"t matter which bank I spoke with, the story was the same. When I pointed out that conventional mortgages were a full 2 points lower with a longer term than what these banks were quoting me for an agricultural loan, the banks said that agricultural loans weren"t open to the other funding sources that are available to the convention mortgage market, thus the shorter term and higher interest rates.

In addition, all of the banks expected the farm to earn enough money through farming to pay the mortgage! The banks really didn"t want to consider my off-farm income for servicing the debt. The banks set the limit at what I could borrow based primarily on the farm"s ability to generate income. In the end, only Farm Credit Services of America made it possible for me to buy a farm. Only they were able to offer rates and long terms comparable to a conventional mortgage.

[Log in to Reply]  [No Email]
[Show Entire Topic]     [Options]  [Printer Friendly]  [Posting Help]  [Return to Forum]   [Log in to Reply]

Hop to:

Fast Shipping!  Most of our stocked parts ship within 24 hours (M-Th). Expedited shipping available, just call! Most prices for parts and manuals are below our competitors. Compare our super low shipping rates! We have the parts you need to repair your tractor. We are a company you can trust and have generous return policies. Shop Online Today or call our friendly sales staff toll free (800) 853-2651. [ About Us ]

Home  |  Forums

Copyright © 1997-2018 Yesterday's Tractor Co.

All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy

TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.

Yesterday's Tractors - Antique Tractor Headquarters