June 15, 2017
Are you one of those who enjoy living in the country? Or,
are you thinking of leaving the suburban life and want to buy a home in a rural
or semi-rural area? You’re certainly not alone. In fact, around 15 percent of
the United States population lives in what is referred to as “rural” areas. A
rural area is defined by the United States Census Bureau as any census tract
with less than 2,500 in population. If you’re in the process of looking for a
home in the country it’s important to understand how lenders evaluate homes in
rural areas. Here are five things you need to know.
Turn on the Lights. Actually, this means more than just
electricity but all utilities including gas, heating and water. Depending upon
how “country” the area is, it’s likely your water will come from a well. If
not, then the water is brought to your home by connecting to local water lines.
As it relates to water, you’ll want to have the water tested (one side note,
well water is free).
a rural property concerns location just as with a home in an urban area. When
you’re looking for a home out in the country, will you be commuting to work? If
so, how easy is it to get where you need to go? When it’s time to visit the
grocery store, you’re quickly reminded you’d rather buy in bulk instead of
“bringing something home after work.”
systems are also a money-saver as there are no municipalities that will charge
you for using the public sewer. But you’ll also want to have the septic system
inspected and lenders might want to see a certification the system is working
properly and some loan programs require a cleared “septic cert.”
want to explore the USDA home loan program designed to finance properties
located in rural areas. This is a zero down home loan with very competitive
interest rates. The property must be in an approved zone (if it’s truly rural
it probably is) and there are income limitations placed on the household. When
you’re exploring certain areas and find a prospect, talk to your loan officer
to see if you and the property is eligible for USDA financing.
Don’t Fly Solo. We’ve
always recommended our clients to use a real estate agent to help you find a
home regardless of the location but especially in rural areas. When using an
agent familiar with where you want to live, you’ll get the best deal and the
agent can do much of the groundwork for you so you don’t have to.
For more information or questions about mortgage loans, please call (855) 757-8748.