Beginning Farmer Loans may be used for purchasing farmland (including existing improvements.)

Qualified applicants may finance projects up to $333,500.00 for purchasing land.

To be eligible for a Beginning Farmer Loan, an applicant must:

• Have operated a farm for at least (3) years but not more than (10) years.
• Never have held a direct or indirect ownership interest in substantial farmland (NCAFA should be contacted for specific farm size figures for each county.)
• Have access to adequate working capital.
• Be educated or experienced in the type of faming operation for which the loan is sought.
• Meet the basic eligibility requirements for a "Series I" loan from NCAFA.
• The applicant must make a cash down payment of at least 5% of the purchase price.

A $75 application fee is required when the application is submitted and a closing fee equal to 1% (1% of NCAFA's loan) may be applicable and payable at loan closing.

Follow these steps:

• Obtain an application from the North Carolina Agricultural Finance Authority. This loan request will be for no more than 50% of the applicants need.
• Simultaneously submit an application to the local Farm Service Agency office for their Down Payment Loan Program. This loan request will be for no more than 45% of the applicants need.
• NCAFA accepts the application as completed by FSA and evaluates making a long for 50% of the applicant's need.

NCAFA loan rate for Beginning Farmer Loan Program is a variable rate of Prime plus .75%, which can change quarterly. Loans are amortized over 30 years with a balloon payment no earlier than 20 years after loan origination.

Applicant must make a cash down payment of at least 5% of the purchase price.