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What First-Time Home Builders Should Know About Rural Home Construction

Building a home in the country is a dream for a lot of folks, and it’s easy to understand why; you get to live in a home that was built just the way you wanted it. You’ll have a modern heating and cooling system, plumbing and other features that older homes may not. If you’re relocating from a city, you’ll have more room to spread your wings and relax — and it’s probably a bit quieter, too.  

Of course, building a home isn’t without its challenges, and building in a rural location may come with a few unique ones. But, if you’re aware of the potential snags and have a plan to handle them you’ll be that much closer to making your dream a reality. 

Choose where to build your home

The first thing you’ll need to do is decide where you want to live. Obvious, right? But really think about why you want to build a country home. How do you envision spending your time? Is it going to be your full-time residence, or are you building a vacation home? Will you want access to water for recreation, wooded areas for hunting, or space to run a hobby farm (or even a larger operation)? How close to town do you want to be?

A rural lifestyle means different things to different people. Knowing a few specifics about how you see yourself living in your new home can help you narrow down your search for land.  

Before you commit to any location, investigate how you’ll get access to utilities and whether any special zoning or permitting ordinances apply to your area. Your real estate agent should explain this, but if they don’t, be sure to ask. You can also contact the local assessor’s office or town clerk to verify these details on your own. 

Finance your build

Once you’ve found the perfect place for your new home build you’re going to need a way to purchase the land and pay for your home’s construction. For most people that means applying for a construction loan

In general, construction loans come with a slightly higher interest rate than a loan for an existing home. That’s because there’s typically more risk involved in creating something new than in buying something that’s already made. Some financial institutions don’t offer construction loans precisely for that reason. 

Working with a lender who understands the process of building a home — especially one in a rural community — can be a huge advantage. Construction loans through Compeer, for example, are designed to give new home builders flexibility. Our one-close loan option keeps things simple and gives borrowers one loan for the entire project. When you’re managing all the moving pieces involved in building a home, knowing you already have the funds you need for all aspects of the build is a major relief. 

A lender specializing in rural living is also more likely to have loan products that are tailored to the unique needs of rural home building. Remember earlier when we asked how you envision living in your country home? Depending on your answer, there might be a loan just for that specific lifestyle.  

Compeer has financing options tailored to hobby farm construction, log homes, earth homes or manufactured homes. There’s even an option if your home is still TBD. A home site loan gives you up to 10 years to start building or paying back the loan.

Plan to be patient

No matter how long you think building a new home will take, it’s a pretty safe bet that it’s going to take at least a little bit longer, which is one more reason Compeer’s home site loan could be a great option. In some cases, getting your design finalized and proper permits in place can take as long as eight months.  

Supply chain issues have had an impact on the availability of building materials and wait times can run a few months, depending on the material you need. Contractors and construction crews may also be booked out for some time longer than you anticipated. Then there’s always the weather, which can cause delays or setbacks. 

If your new home building project runs into any of these issues, try not to be too discouraged. The care you and your home building team put into designing, planning, and constructing your home will all be worth it when you’re happily living your best country life.


Get the right financing for your new home construction project from Compeer Financial. Contact us now to connect with a financial professional.


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