A All loans require some level of equity, which is the difference between the appraised value of the real estate 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. A The FLBA of Texas is not a depository, but we offer two interest-bearing accounts. Our Funds Held account pays borrowers interest at 250 basis points below the loan's stated billing rate.
Interest earned is applied to the interest due on the next loan installment.
Borrowers can use the money in the Funds Held account to pay loan installments or withdraw it for other purposes. Our Future Payment Fund account pays borrowers interest at the stated billing rate of the loan. Interest earned is applied to interest due on the next loan installment. A FLBA of Texas 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.