Rural Financing Information

Living in the country offers a great lifestyle . Buying a country home can be wonderful experience, or it can turn into a nightmare.

Financing a home in a small town or rural area can be substantially different from financing a home in the city. Fewer lenders are willing to offer loans in rural areas, also credit requirements and down payment amounts may be different. Working with a Mortgage Company who understands rural lending is very important .

Below are some considerations:

Interest Rates: Interest rates can be considerably higher if you get a lender who lacks understanding of the rural marketplace and doesn’t make rural loans on a regular basis.

Down Payment: It is more difficult to find 100% financing on rural property and is almost impossible to find 100% financing on land only or on a home with more than 10 acres. You are more likely to receive a better offer to finance your dream home in the country when working with a lender specializing in rural lending.

Acreage: There are rural and land lenders who will offer loans involving acreage. However, many lenders do not have experience in lending on acreage and will not loan on more than 2 or 3 acres. Other lenders will only allow the value of 10 acres to be used in determining the appraised value, no matter how many acres are being purchased .

Unique Properties: It is more difficult to find financing for homes or properties that are unique. In rural areas we find more of these types of properties. Some of the home types requiring special financing considerations are earth berm, geodesic dome, round, log, metal sided, etc.

Manufactured Homes (mobile homes) : While financing is available for manufactured homes, both with and without acreage, expect rates to be higher and down payments larger.

Pre-Approval: We do recommend getting pre-approved once you’ve made the decision to purchase a home in the country. The process should be started 90-120 days in advance of the time you plan to purchase property. Involving the right mortgage company early in the process can save you time and money.

We are Rural Mortgage Services, dba American First Mortgage, and offer a wide range of mortgage products for Rural and Small Town America. Our company has a working relationship with many lenders specializing in rural lending. Our experienced staff can also put you in contact with reputable real estate companies and suppliers for the other services you will need.

We live and work in the country and understand what is required to make buying your place a great experience. Our company is easy to work with and we would like to talk with you about your plans. CLICK HERE to start the pre-approval process, request more information or just to give us a call to discuss your ideas.