Rural home loans

Obtaining a mortgage for a home that is considered rural can be frustrating from finding a lender that will do it and appraisal issues. Many lenders simply do not want to lend on rural properties due to the fact that they are harder to sell if they were to go into default.

It is harder to gauge the value of the home as well. It can be done and there are lenders out there for rural areas, but you will definitely need to let your mortgage professional know that your property could be classified as rural.

Many lenders have no problems with rural properties as long as most of the value of the property is in the house and not the acreage.
If you are purchasing or refinancing a rural property with acreage be prepared to find a good appraiser who can determine the value of house seperate from the value of the land. The loan to value ratio is important and a large down payment can often mean a loan approval.