Forms
Dakota Mac has developed certain forms to facilitate the processing of Fast Track loan applications. Use of these forms is mandatory for loans submitted for Fast Track underwriting.

Required forms are: 1. Fast Track Loan Application, 2. Fast Track Balance Sheet and Schedules; and 3. Fast Track Preliminary Approval Checklist

Loan Application
It is expected that the Fast Track Loan Application will be completed, with all questions answered and salient information provided, and signed by at least one borrower prior to submission to Dakota Mac for preliminary approval (additional signatures may be obtained at loan closing). A married couple applying jointly may use one form. Additional applicants and guarantors must each complete and sign a separate Loan Application.

Loan Size
The maximum size for Fast Track loans is $750,000. An individual borrower may have more than one Fast Track loan provided that the total outstanding amount underwritten as Fast Track does not exceed $750,000 at any time.

Loan Purpose
Loan proceeds may be used for:

1. Purchase of real estate,
2. Refinance of real estate debt,
3. Financing capital improvements, and
4. Cash-out not to exceed 25% of total loan proceeds.
1. Cash out is any loan proceeds in excess of funds needed to purchase real estate, refinance real estate debt and finance capital improvements.
2. Cash out typically may include loan origination and closing costs and amounts used to refinance liens against the security property that fail to meet the program requirement of being in place 12 months or longer with demonstrated repayment performance such that at least one timely payment of principal and interest has been made.

Facility Loans
The Fast Track option may be used to process a facility loan if the contributory value of all improvements, excluding the primary dwelling (if any), does not exceed 40% of the total appraised value of the property to be mortgaged.

Terms
The Fast Track option may be used to process any Dakota Mac Full-Time Farm product other than those providing for the annual repayment of principal and interest.

No Exceptions
No applications for Standard 9 exceptions to Fast Track processed loans will be accepted and Dakota Mac will not grant any exceptions to the standards established for loan approval via Fast Track.

Loan-to-Value
The Loan-to-Value ratio may not exceed 55%.

Balance Sheet
A completed and signed balance sheet (Dakota Mac Form 1030) must be submitted for each applicant, co-maker and guarantor (including legal entities such as partnerships, limited liability companies, corporations and trusts). The current Debt-to-Asset (D/A) may not exceed 50%.

Triple-Merged Credit Report
A triple-merged credit report must be obtained for each applicant. The minimum allowable score for individual applicants is set forth in the table below:

Minimum Credit Score
Loan Size	<$400,000	660
Loan Size	> $400,000	680

An applicant’s credit report must indicate he/she has a history of repaying creditors in a timely manner. The Seller must provide an explanation for any derogatory credit reported during the previous 24 months. A poor credit history alone may be the basis for denying a loan.

Mortgage indebtedness must be verified. If outstanding mortgage debt is not reported in the triple-merged credit report, the Seller must obtain and analyze:

1. A written mortgage debt and repayment performance verification that reports a minimum of the most recent two full years’ performance, or
2. An IRS form 1098 for each of the last two years for each outstanding mortgage debt that is subject to IRS reporting.

Income
Income tax returns are used to assess the applicant’s debt servicing capacity, evaluate the reasonableness of the values stated in the balance sheet for equipment and other assets and verify the existence of related entities not listed on the asset or liability schedules. Sellers must obtain a copy with original signature(s) or initials for each applicant of his / her complete IRS income tax filing (including all schedules) for the most recent tax year, together with:

1. IRS form #4506, Request for Copy of Transcript of Tax Form; and
2. Copies of the two most recent pay stubs for each applicant who is employed off the farm.

Items not Required
Dakota Mac does not require that the following items be submitted with loans that meet the criteria for using the Fast Track option:

1. Pro forma balance sheets and income statements
2. An ARM interest rate stress test
3. A comprehensive loan narrative
4. Qualifying financial ratios. Unlike the standard submission option, loan qualification through Fast Track is not predicated on the financial ratios found in Sub-Chapter 201.1 of this Guide for:
1. Property Debt Coverage (PDC),
2. Current Ratio (CR),
3. Total Debt Coverage (TDC).

Appraisal
Appraisals for Fast Track loans are appraisals documented in a Summary Appraisal Report that complies with Standards Rule 2-2 (b) in USPAP.

Preliminary Approval
Dakota Mac will accept for preliminary approval those Fast Track loans packaged as set forth below and accompanied by Dakota Mac Form 1031, Fast Track Preliminary Loan Approval Checklist: All submissions for Preliminary Approval via Fast Track must include:

• Signed Fast Track Loan Application(s) naming all applicants, co-makers and proposed guarantors.
• Request for maximum interest rate for which approval is sought.
• Market Value Balance Sheet for each applicant, co-maker and guarantor. The estimated value of the proposed loan security should be clearly set forth.
• Verification of mortgage(s) if mortgage debt is not covered in the Credit Report.
• A copy with original signatures of the complete IRS tax filing for the most recent complete tax year for each applicant and proposed guarantor.
• Signed copy of Request for Copy of Transcript of Tax Form (IRS 4506) for each applicant.
• A copy of the two most recent paycheck stubs for each applicant who is employed off the farm.
• A brief narrative detailing the use of loan proceeds and the reason(s) for borrowing.