Farm Real Estate Loan Guarantee Program

This program assists farmers with purchasing or restructuring agricultural real estate loans by providing a financial institution with a 75% guarantee of total loans that do not exceed $400,000 to an individual borrower.

Loan Requirements:

Lead Lender - Any bank, credit union, or lending association that is a part of the farm credit system, and savings and loan association in the state of North Dakota. The lead lender will be responsible for submitting a Farm Real Estate Loan Guarantee Lender Payment History Form to BND annually.

Borrower - A North Dakota resident at least eighteen (18) years old.

Guarantee - Bank of North Dakota may guarantee up to 75% of the amount of principal due the lender. The total of agricultural real estate loans to be guaranteed may not exceed $400,000 to an individual borrower. The Bank may approve a guarantee on a loan up to 80% of the certified appraised value of the agricultural real estate.

Term - The guarantee term may not exceed five years.

Guarantee Fee – The fee is .5% per year or a onetime fee of 1.5% of the guaranteed portion. The guarantee fee may be included in the loan or in the rate charged by the lender.

Application by a lead lender is required to apply for BND's guarantee. See application for additional documentation required when submitting a request to BND. The lead lender is responsible for servicing the loan.

Interest Rate - The maximum amount the lender may charge may not exceed 3% above BND base rate. The guarantee fee may be included in the loan or in the rate charged by the lender.

Other Features - This program can be used in conjunction with other BND loan programs. The Bank may have no more than $8,000,000 in outstanding loan guarantees under the farm real estate loan guarantee program.

For more information please contact us at:

Bank of North Dakota
1200 Memorial Hwy
PO Box 5509
Bismarck, ND 58506-5509
(701) 328-5624
1-800-472-2166 ext. 5624
TDD (Telephone Device for the Deaf) 1-800-643-3916