Frequently Asked Questions

Who is Central Texas Farm Credit?

Central Texas Farm Credit has been providing long-term agricultural real estate loans for more than 90 years. Beginning July 1, 2006, the Association also obtained authority to offer short and intermediate-term financing to its member-borrowers. We are headquartered in Coleman, Texas and have five lending offices, which serve 19 Central Texas counties, which offer loans throughout Texas.

What is an Agricultural Credit Association?

An Agricultural Credit Association, or ACA, is a financial service provider specializing in loans on farms, ranches, recreational property, agribusinesses, and rural homes. ACAs are cooperatively owned and locally operated.

What does cooperatively owned mean?

Cooperatively owned means that each borrower has an ownership interest in the association. Everyone who obtains a loan through Central Texas Farm Credit becomes an owner of the association through the purchase of stock equal to two percent of their loan amount or $1,000.00, whichever is less. Funds for the stock can be included in the loan. Ownership of this stock provides you the right to participate in the business affairs of the association, including election of the board of directors. Typically, the financial performance of the association allows borrowers to be paid a patronage refund and/or dividend, which further reduces the cost of borrowing for our customers.

What does locally operated mean?

Locally operated means that Central Texas Farm Credit is supervised by a board of directors elected by the borrowers of the association. The directors employ professional personnel to manage the operations of the association. The association operates under policies and procedures adopted by the board of directors and management team.

Who is eligible to borrow?

Any person or legal entity that currently owns or is purchasing rural real estate (land outside the city) is eligible to apply for a loan. Loan approval and terms are subject to the creditworthiness of the applicant.

What types of loans does Central Texas Farm Credit make?

We make loans to purchase land, refinance existing mortgages and other debts, construct and repair homes and other buildings, make property improvements, construct or improve agribusiness facilities, purchase machinery and equipment, purchase livestock, and any other needs where long, intermediate or short-term financing is appropriate. (Learn more about our loan programs.)

What collateral is required?

Real estate loans must be secured by a first lien mortgage on real estate; generally on the farm, ranch or agribusiness facility that is financed by the loan. Operating loans are generally secured by a lien on livestock, equipment, vehicles, or other chattels.

How much can I borrow?

All loans require some level of equity, which is the difference between the appraised value of the security offered as collateral and the loan amount. The appraised value, financial strength and repayment ability of the applicant will determine the total amount to be borrowed. Down payment or equity requirements generally range between 15 and 20 percent.

Does the association accept deposits?

Central Texas Farm Credit is not a depository institution, but we offer several interest-bearing trust accounts. Contact the Association for detailed information about these valuable interest-bearing trust accounts.

Where does Central Texas Farm Credit obtain funds to make loans?

Central Texas Farm Credit is a part of the national Farm Credit System and is affiliated with the Farm Credit Bank of Texas, located in Austin, Texas. The Farm Credit Bank provides funding for loans by selling bonds to investors in the nation's money markets.

How can I contact Central Texas Farm Credit?

E-mail, phone or just drop by any of our locations.