Home Mortgage Interest Rates – Is there a difference between the country and the city?
When it comes to seeking financing for your rural home, sometimes traditional residential financing just isn’t the right fit. Exploring your options with an agricultural mortgage lender is a great way to find the financing for your rural home that is right for you.
“What’s the interest rate?" This is the question virtually every potential home buyer asks. Since different loan programs are available for specific properties, there is no simple answer. The first questions that come to mind when someone asks me about rates are:
- What kind of a property are you talking about?
- Is it in the city or the country?
- Are there tillable acres or wooded acres on the property?
- What about outbuildings and livestock?
For properties in the city or a town, most lenders use typical residential financing. Typical residential financing provides lenders with a financing solutions to support homebuyers purchasing properties with just a house.
But what if you’ve dreamed of owning a property in the country where you could raise animals or with tillable or wooded acres? These properties might not qualify for a typical residential loan program. There are, however, loan programs that cover properties that don’t qualify for typical residential financing and can provide small farm loans or loans for rural homes. If you’re looking for a rural property that doesn’t qualify for typical residential financing, you can work with a mortgage lender familiar with rural properties like Compeer and you can rest assured they’ll help you review your options and guide you along the way. Compeer offers two loan programs to help with all types of properties* –
- Freddie Mac loan program – with rates comparable to typical residential loan, this program is generally for properties that have only a dwelling and limited acreage.
- Portfolio program - loans help by Compeer Financial. Rates again are often slightly higher than typical financing, but this program provides financial for residences with acreage, outbuildings and has no limit on the number of livestock on the property.
If you dream of living in the country or a small town on a property that doesn’t fit typical residential financing, you might not want to focus on rates alone since your dream property might not qualify for typical residential financing. Instead, find a mortgage lender like Compeer who specializes in rural mortgages. They can help you find the right loan program to fit your non-typical dream!
Compeer offers mortgage financing for rural properties, including conventional, non-conforming and home equity loans. To qualify, the property must be in an eligible area as determined by Compeer. Other program and underwriting criteria apply. For more information visit Compeer Home Mortgage