A WORD ABOUT FINANCING FARMS AND FACILITIES
The information on this page is intended to help you become an educated buyer. 

Always talk to your lender of choice about the type of property you'd like to purchase and let them help you decide what type of loan would be best for you. A good loan originator will be well-educated as to the properties they can and cannot help you finance. You'll be able to ask the right question and avoid the headache of applying for a loan just to have the property turned down at the last minute because it didn't conform.  

You will see that HORSE FACILITIES AND LARGE FARMS can sometimes be a problem to finance through a mortgage company. Due to the nature of the property, excess acreage and/or large, valuable outbuildings, mortgages on these types of proerties can require specailized loans or portfolio loans through local banks. Understanding the process and the limitations placed on your lender by the secondary mortgage market will help you decide how and where to secure financing for the farm. A conventional lender might not see the value in items such as a 10 stall barn or large arenas on the property. A conventional appraiser might value these at a third or less of what it cost to replace them as that is sometimes all its "worth" to the lender's investors based on FNMA's Guidelines. We all know how valuable those buildings can be but might not matter to the bank. What you need to know is that most home mortgages are sold to investors on the secondary market. These sales generate new funds for the next round of buyers, and so on. You also must understand the "behind the scenes" restrictions FNMA Guidelines place on conventional lenders.  

Please take the time to discuss your financing plans with me before you start your property search and I can give you guidance as to what your best option might be, based on the type of property you are interested in pursuing. 

I can help you pre-qualify for your mortgage. It's my job! This is free and without obligation...