Land only LoansOnly Land Loans
Purchase of arable land | Agrardarlehen
Extra space or a single real estate possibility can be available at any given moment and often at last-minute intervals. We do not have prepayment penalties on our loans, so we can allow you to take an occasion and then fund cheaper with a traditional (slow) creditor. It can help with auctions of real estate where we can always make you an estimate so that you know the financing costs in detail.
As soon as the breaker hits, you usually have 28 or less working days in which to make the sale, and we can make sure you keep your time. Even if there are questions relating specifically to properties you are interested in, such as accessibility laws, intrusive land, draining difficulties or any challenges that are too challenging for someone with no farming expertise, we will consider all kinds of properties - if so, come and speak to our specialist.
There is some land available that would be of value to your business: We' ll give you a basic choice that you can accept: The request goes to a special credit clerk: I' ll ask your credit counsel: We' ll pay you a courtesy call on the farm: The customer wanted to purchase an adjoining holding to his current farms, as this would allow him to rebuild the purchased holding to accommodate his fast-growing farms, with the extra space contributing to increasing his company's economies of scales.
Federal Funds facilitate Highly Volatile Real Estate Regulatory Requirements (HVCRE) Credit Granting
When a property is used to meet a borrower's 15% investment needs, the law allows the estimated value of the property to be taken into account when determining the amount of the borrower's investment. So far, only the money that the borrowing party pays for the property has been included. If the property of a debtor has increased in value since the acquisition, the increase in value is now offset against the 15% investment.
It restricts the type of loans for which a bank must have a higher reserve to what the law now calls 'HVCRE ADC loans'. Previously, the need for equity was met by an acquisitions, developments or building credit (without one of the legal exceptions). First and foremost, the loans must be used to fund or fund the purchase, redevelopment or building of immovable properties, the loans must be used to fund the purchase, redevelopment or improvement of immovable properties into high-income immovable properties, and repayments must depend on prospective returns or revenues from the sale or refurbishment of the immovable properties.
What we want regulatory authorities to do is explain what it means when a credit is granted for the "primary" financing of our business. Borrower can now use and draw on the internal earned equity until the 15% equity investment requirement is met. Previously, "self-generated" funds had to remain in the HVCRE exemption "throughout the entire duration of the project".
In addition, the law stipulates that the debtor is obligated by contract (through the lending documents) to hold the 15% equity interest in the original investment until the debt is classified as non-HVCRE ADC. Under the law, any paid-up principal in excess of the 15% threshold may also be retracted and used by the debtor, but the wording is not clear.
Hopefully, the regulatory authorities will provide guidelines in writing to confirm their interpretations of the term "so" in this regard, i.e. whether "such a minimal amount of contributions of capital" relates (1) only to the amount of money necessary to sustain the 15% deposit, or (2) to the totality of the original invested money. It added two exemptions to the HVCRE ADC loan concept to exempt the beneficiary institutions from the extra equity requirement if the loan is already profitable and the underlying funds are sufficiently liquid to meet the Bank's insurance technical conditions for long-term financing.
Exceptions are acquisitions and refinancing loans and building loans. The HVCRE share premium is now explicitly waived for loans taken out before 1 January 2015. It is not necessary to create extra equity for loans before 2015 that would be considered HVCRE ADC loans if they were created today.