Back to Blog

Interested in a Rural Property?

Buying a home in the country is a dream for many, but there are a few important points to keep in mind before you dive right in!

Here are a few things you should know:

  1. Check The Zoning: When it comes to buying rural property, it is important to check how the property is zoned. This is vital as zoning will determine how you are able to use the land, as well as what types of buildings are allowed and where they can be located. Is the property zoned as “residential,” “agricultural” or perhaps “country residential”? Depending on the zoning, it could affect the lenders available to you and what you qualify for.

  2. Property Boundaries: Once you have determined how a property is zoned, it is important to look at the land. You may want to acquire a survey early in the process if the boundaries are not clear. Knowing the exact boundaries of your potential property will help to avoid future disputes and help you make an informed decision as to whether the land meets your needs or not.

  3. Considering the Land and Your Mortgage: What many people don’t realize is that land has an effect on qualifying for a mortgage and what you can borrow. In fact, most lenders will mortgage: (1) house, (1) outbuilding and up to (10) acres of land. If you have several outbuildings or extra land that is being purchased, you may need to consider additional funding on top of your typical 5% down payment. This doesn’t mean that you cannot obtain a mortgage for a property with more than 10 acres, we absolutely have access to lenders that will allow this! It is always a good idea to send the property information to your Mortgage Agent in order to verify that the property will work within your approval limit.

  4. Water and Sewage: When it comes to rural living, many people draw water from private wells and utilize septic tanks
    for sewage. To ensure everything is safe and in working order, it is a good idea to have an inspection done on the septic tank and water quality as a condition on the purchase offer. Due to the nature of these properties, be advised that inspections may cost more than it would in the city, but it is important as lenders may request potability and flow tests.

  5. Coverage Matters! When it comes to rural properties, you will want to obtain Title Insurance in addition to your home insurance policy. In fact, most lenders now require Title Insurance. Title insurance protects the title of your new property from fraud and possible deficiencies, such as unregistered utility easements. 

If your dream is to purchase a home in the country, I would be happy to help you determine your options! My goal is to ensure that you understand any differences in the mortgage process and overall qualifying that come with rural purchases.

I also know several realtors who specialize in rural properties…let us help you purchase your country home!