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Real Estate Loans

Looking for a new home? Starting new construction? Thinking of buying some bare land? Or, just want to cash out some equity from your current home? We have several lending options available to you. We offer competitive rates on conventional mortgages and construction loans.

Real Estate Loan Options

  • Real Estate Purchase Loans
  • Construction Loans
  • Refinance Loans
  • Home Equity Loans

    Before you commit to another lender, be sure to stop in and apply with us. Just fill out our printable Mortgage Application and drop it off with one of our loan officers. In some cases, we will be able to get you pre-approved that day!

    If you would like to know approximately how much home is in your price range, use our convenient Mortgage Calculators to estimate your monthly payments based on the principal and interest. Real estate taxes and insurance may raise your monthly payments.

  • Safe Act
    Farmers & Merchants State Bank is compliant with all requirements of the Safe Act.
    Farmers & Merchants State Bank - Registration #758197
    Michael W. Johnson - MLO Registration #789980
    Jeb M. Johnson - MLO Registration #1037972

    USDA Rural Housing Program

    If you are looking to purchase but don't have the necessary down payment that a conventional loan may require, then a Rural Housing Section 502 loan may be the perfect option for you. Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Applicants for loans may have an income of up to 115% of the median income for the area. Area income guidelines can be found here.

    Loans are made to individuals for up to 100% of the appraised value of the home. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories.

    Please contact us for further details, we can tell you if a USDA Rural Housing loan is the right option for you.




    Farmers and Merchants State Bank
    125 E James Street P.O. Box 137
    Paynesville,MN 56362
    (320)-243-3702


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