For many, the country’s slower pace and quiet living is more easily attainable with remote working or a great weekend retreat. Financing a rural home is different from purchasing a home in a suburb or urban city and Rural 1st specializes in rural home and land financing.
Here is what you need to know before you buy your first home in a rural community.
Homes with land
If you want to purchase a home with 10 or more acres, some lenders will split up your loan into a home loan and a land loan. Be sure to check with your lender for how many acres they are willing to finance on a home loan.
In a subdivision, there are probably half a dozen comparable homes for lenders to appraise against. When purchasing a rural home, appraisers will need to understand how to value acreage, outbuildings or unconventional homes like barndominiums, log homes or shouses.
Infrastructure, improvements and much more
If you are purchasing land in a rural setting with the hopes of building your dream home, you may need to consider a septic system, how you will get water to the property as well as electricity, internet and road access. Factor these when you’re creating your construction budget.
The right partner for rural life
At Rural 1st, we work with homeowners who are buying or building on large plots of land, looking to include fences, outbuildings and property improvements and putting together a budget for a construction project. We can help you navigate your project and share the countless options and products we have to meet your project and financing needs.
Reach out to a loan officer today to get started.