The appraised value, financial strength and repayment ability of the applicant will determine the total amount that can be borrowed. Down payment or equity requirements generally range between 15 and 20 percent. As a cooperative, Capital Farm Credit is owned by its borrowers, who in turn share in our financial success. These capital distributions help lower the effective interest rate paid by our borrowers. Capital Farm Credit offers an interest-bearing funds held account for our borrowers.
Interest earned is applied to interest due on the next loan installment.
Money in the funds held account can be used to pay loan installments, as well as be withdrawn for other purposes. Capital 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.