A client has a 15-acre home that was turned down by conventional financing due to a fenced-in pasture, stable, and a grain silo. Does this still qualify for the RuraLiving program?

Conventional financing often falls short when it comes to properties with agricultural elements, but RuraLiving was designed with these unique characteristics in mind. Whether it’s a pasture, silo, stable, barn, outbuilding, tillable acreage or equine facility, our program is tailored specifically for nonconforming properties like this. So, don’t let a grain silo stand in the way of securing your client’s dream property. Check out our comprehensive lender’s guide to rural home financing for more details on eligible rural properties.

Do you allow more than one dwelling on the property?

RuraLiving can accommodate up to three dwellings on a single rural property. The primary home should be the main focus and meet our eligible property type criteria, with the majority of the property’s value attributed to this dwelling. The other two dwellings offer flexibility and could include a variety of options: another eligible property type, a studio within a shop, a garage with an apartment, a converted barn, a manufactured home, a bunkhouse, or even a separate mother-in-law quarters. This versatility allows you to meet the diverse needs of your rural mortgage clients, helping them fully embrace country living.

In our area, we are starting to see more shed homes. Are those allowed under the RuraLiving program?

Shed homes, also known as barndominiums or shouses, are becoming increasingly popular, and we’re on board with this trend. We handle these types of homes on a case-by-case basis. To qualify for a rural home mortgage under our program, shed homes should have a traditional floor plan, and there should be no livestock or commercial activity under the same roofline as the home. Additionally, these homes should be common in the area and supported by comparable sales—ideally two, but at least one similar comp.

What are the appraisal options?

For rural mortgage loans, we require the appraisal to be completed by a Certified Residential or Certified General Appraiser. While we prefer the use of a Fannie Mae 1004 or Freddie Mac 70 appraisal form, we’re also open to the UAAR appraisal form when necessary. Our priority is to ensure the unique value of rural properties is accurately captured, providing a fair assessment for your clients and helping them secure the right rural home mortgage.

If an appraiser says comps may be hard to find near the borrower’s residence, how far out can they go to find comps?

We get it—rural properties can be spread out, and finding comparable sales nearby can be challenging. That’s why we allow appraisers to search for comps up to 50 miles away from the subject property and up to 12 months old if necessary. This flexibility helps ensure your clients can secure a rural mortgage loan, even in areas where homes are more isolated, bringing them one step closer to living in the country.