Terms
Loans are amortized over periods up to 21 years. Amortizing a loan provides borrowers a set amount to pay each year that will retire the loan in the number of years for which the loan is amortized. Interest on loans is a fixed rate set by the board of directors. A fixed interest rate is one that stays the same during the period of the loan. Borrowers are required to make annual payments on loans. Borrowers are encouraged to pay on their loans throughout the year when their income is available. Payments will be accepted in any amount at any time; and interest will stop on prepayments applied to principal. There is no penalty for extra payments on loans or paying loans off early. 

Loan Purposes
Loans that are consistent with environmental quality and standards may be made to:

1. Purchase or enlarge a farm. This may include an applicant's portion of the cost of a large tract of land which is being subdivided.
   
2. Construct or improve buildings and facilities (This includes water and sewage systems).
   
3. Refinance secured and unsecured debts.
   
4. Other purposes that may be determined by the board as meeting the objectives of ORRC. 
   

Objective
The basic objectives of ORRC loans are to assist eligible farmers and ranchers in becoming owner-operators of family farms, to make efficient use of land, labor and other resources, to carry on a sound and successful operation on the farm and to afford the family to have a reasonable standard of living. 

a. experience or training in farming

b. the character, ability and industry necessary to be successful

c. the need for ORRC credit due to rates and terms. 

Please contact our office at 405.377.2010 for a loan application.

Security Requirements
Each loan will be secured to protect the interest of ORRC. A loan will be secured by a mortgage on all or part of farm. The percentage of the present market value of farm properties to borrower's loan will be set by the board of directors. 

Appraisals
After eligibility is determined, the next step is to determine value and the amount of loan needed. Value of real estate property will be determined by certified general appraisers. ORRC can generally provide names of qualified appraisers in the applicant's locality. 

The Loan Program has a two-fold purpose by providing needed credit for farmers and ranchers and generating income for scholarships and grants.

Applications
Applications for Oklahoma Rural Rehabilitation (ORRC) loans will be filed in ORRC office at 401 S. Lewis, Stillwater, OK 74074. Qualifications for applicants will be considered without regard to race, creed,color, sex, national origin or marital status. The ORRC office will be available to applicants to explain the loan services available. The applicant will make sure that the application is completed, dated and signed. ORRC employees will furnish whatever assistance is necessary. 

Farm
The term "farm" includes a tract or tracts of land, improvements and other appurtenances considered to be farm property and owned or to be acquired by the applicant. Farm generally will be considered to be used in production of crops, livestock and other enterprises to be considered farm related. The term "farm" will include any land and improvements and facilities used in farm and non-farm enterprises. 

Processing Applications
Information concerning applications will be obtained and evaluated to determine eligibility and qualifications for loans. ORRC will be certain that a thorough understanding in regard to basic loan making and servicing policies and the responsibility of borrowers exists. 

Loan Limitations
Borrower's unpaid principal balance owed to ORRC, plus any past-due interest, plus the amount of any loan being made, will not exceed $200,000. Loans of less than $100,000 will be given preference over larger loans. 

Eligibility
1. Be a citizen of the United States and a resident of the state of Oklahoma
2. Possess the legal capacity to incur the obligation of the loan
3. Be an individual who has:

4.  Possess an acceptable credit history