Farm, Ranch, and Land Buyers

Randy, an avid hunter, set his sights on purchasing a 300-acre farm—both as prime hunting land and for continued crop harvesting. While he had experience buying homes, he was unfamiliar with the qualifications for a farm loan. In order to navigate the process, he reached out to Jim Yarrington at First State Bank.

Jim took the time to explain the key differences between home and farm loans. Unlike traditional mortgages, which rely heavily on a borrower's debt-to-income (DTI) ratio, farm loans often consider an asset-to-income (ATI) ratio—evaluating the farm's productivity, land value, and potential cash flow rather than just personal income.

With a solid savings for the required down payment and a clear understanding of the process, Randy worked with Jim to gather the necessary documentation. Jim submitted the loan package, securing a successful approval.

Now, Randy is the proud owner of nearly 300 acres of rolling hills and rich farm land in western Kansas, enjoying both the thrill of hunting and the satisfaction of a well-planned investment.