WANT TO BUY RURAL PROPERTY? 6 THINGS TO KNOW BEFORE YOU BUY!

Thinking about moving to the country? 🌾🏡

Space, quiet, fresh air — it’s appealing for many families.

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But financing rural property is VERY different than buying in town, and if you don’t know the rules, you can run into major problems.

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Here’s what you need to know 👇

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1️⃣ Lenders treat rural properties as higher risk

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Lenders don’t want to end up owning rural land.

If they ever had to foreclose, rural homes take longer to sell, and the market is smaller.

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Higher risk = stricter rules, more conditions, and sometimes higher rates.

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2️⃣ Zoning matters — a LOT

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Not all rural zoning qualifies for mortgage financing.

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Many lenders will NOT mortgage:

✔️ agricultural zoning

✔️ commercial farm operations

✔️ hobby farms with income

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Residential-only zoning is the easiest for financing.

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3️⃣ Wells and septic systems must be tested

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Most rural homes rely on a private well and septic system.

Lenders will often require:

✔️ potability test (water quality)

✔️ flow test (water output)

✔️ septic inspection or written warranty from seller

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These systems are expensive to repair or replace, so never skip these conditions.

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4️⃣ Only the home + 10 acres typically count

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When a lender orders an appraisal, they usually include:

✔️ the house

✔️ garage

✔️ up to 10 acres

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Extra land, barns, workshops, livestock buildings, etc., often do NOT increase the mortgageable value.

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5️⃣ Appraisals can come in lower than expected

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Rural properties don’t sell as often, so comparable sales can be limited.

That means:

✔️ lower appraised value

✔️ higher appraisal cost

✔️ longer wait times

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If the appraisal comes in low, you may need to pay the difference in cash.

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6️⃣ Insurance can be harder (and more expensive)

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Living far from fire hydrants or fire stations increases insurance risk.

This means:

✔️ higher premiums

✔️ limited insurer options

✔️ potential insurance refusals

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If you can’t secure insurance, the lender will not release mortgage funds.

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💬 Final Thought

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Buying rural can be amazing — but only if you’re prepared.

Make sure you talk to your:

✔️ mortgage broker

✔️ realtor

✔️ lawyer

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Before writing an offer, not after.

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If you want help reviewing a rural property or checking its financing risks, message The Frontline Mortgage Group — we’ll walk you through everything. 🏡💬