Good Morning!
I’ve written about this before, but I think it’s a good idea to touch on it again…
If you need financing to purchase a home in the country I would use either USDA, FHA, or VA.
The reason I didn’t mention conventional is that a conventional loan generally will have more restrictions on the comparable sales used in the appraisal.
Specifically conventional loans have a conservative limit on how far they will allow the comparable sales used in the appraisal to be away from the subject property.
For this reason, you often run into a Catch-22 using conventional loans in a rural environment.
…Yes you can use a conventional loan, but if the comps are too far away from the subject property so you can’t use a conventional loan, etc…
Generally speaking FHA, USDA, and VA will accept comparable sales that are “common for the area”. …So, in other words, if the comparable sales are all 5 miles away and that’s what is common for the area – then generally they will accept this.
If you are unsure about what type of financing is best to use for your next purchase – shoot me an email or give us a call and tell me about your situation.
That’s it for today!
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