Equity is subject to the lender's criteria for the originated loan. The guaranteed portion of Rural Development loans for farm ownership and farm operating loans, which may be newly-originated or existing, can be sold to Farmer Mac. Loans in portfolio must have at least 12 months remaining term, have valid assignable guarantees, be current and not delinquent in the previous 12 months, and not have an early payoff, delinquency, liquidation or default. Lenders must follow RD standards and procedures for originating farm ownership and operating loans. The ability to sell guaranteed portions of loans helps lenders manage interest rate risk.
Equity is subject to the lender's criteria.
Maturities are the same as the prevailing lender's criteria for RD loans. Freddie Mac purchases mortgages and resells them in the form of guaranteed mortgage securities. Eligibility Loans must be originated by federally insured savings and loan associations, other federally insured financial institutions, or HUD approved mortgage bankers. Mortgages must meet credit, appraisal and underwriting criteria established by Freddie Mac. Loans insured by the Federal Housing Administration or guaranteed by the Veterans Administration must be at least one year old before purchase.