Rural Home FAQs
What is considered a part-time farm?
A part-time farm is a property that has minimal farming activity or is capable of sustained agricultural activity. Generally, the borrower has sufficient off-farm income to qualify. However, income from the property may be used to qualify.
What is considered a rural home?
A rural home is a primary residence which may or may not include acreage and is located in a rural area or in a town having a population of 2500 or less. Only minimal agricultural activity is permitted. Generally, little or no income is derived from the property and as in value of the farm-type outbuildings must not exceed 20% of the appraised value.
Is there any limitation on acreage?
No, there is no limit on the number of acres we can finance. However, the size and nature of the property may determine which products are available to you.
Do I have to live on the property?
For all Rural Home Loans you must occupy the property as your primary residence. For Part-time Farm Loans the property must be either your primary residence or second home.
Does there have to be farming activity or farm income on the property?
No. However, the programs available to you may be limited if you do not intend to produce some limited farm income or if the land is not capable of sustained agricultural activity for part-time farm loans.
Do you finance rental property?
As a rule we do not finance rental or investment property. However, in certain circumstances we can finance part-time farm property that is to be rented if you are a full time or part time farmer.
Do you finance development property?
No, we do not offer financing for land being developed under this program but we have other Commercial loans available that we can.
Do you finance recreational property?
Yes, as long as you intend to eventually build your primary residence on the property.
Is suburban property eligible?
Yes, in some programs. Certain loan programs do restrict financing to those properties located in a rural area or town with a population not exceeding 2500.
Are log home, geodesic, berm and other unique forms of housing eligible?
Unusual type homes are acceptable as long as the value can be supported by the appraisal with comparable structures from the same market. If there are comparable structures in the market but they have not sold the appraiser can use other types of construction with the appropriate adjustment for market acceptance as long as he adequately supports the acceptability of the unique type of structure in the market.
Do you have a minimum loan amount?
Our minimum loan amount is $50,000.
What is your maximum loan to value?
Our maximum loan to value is 80% for Rural Home Loan purchase or limited cash-out refinance transactions and 80% for cash-out refinance transactions. Additional pricing applies for cash-out over 70%. For Part-time Farm Loans, the purchase or limited cash-out refinance limit is 85% and the cash-out refinance limit is 75%. These limits are reduced as the loan amount increases.
Can I use the value in my existing property to purchase additional land?
With the Part-time Farm Loan you may use equity in existing property to purchase additional land. This land does not necessarily have to be contiguous with your existing property. Multiple parcels must be contiguous.
Do you finance horse farms?
Yes, horse farms that include boarding, training or breeding operations are eligible. However, projected income from these operations can not be used for qualification. If income from these properties is needed for qualifying you must have a two year history of such income supported by your Federal income tax returns.
What is your minimum credit score?
Our minimum credit score is 620. Limited products may be available for those with credit scores under 660.
What are your interest rates?
Interest rates vary depending on the loan product. Please call us at 303-773-3545 if you wish to discuss interest rates.
When can I lock-in my interest rate?
Generally your interest rate cannot be locked until we have approved your loan. With some products you may be eligible to rate lock prior to that time.
How long does it take to close my loan?
Upon receipt of a complete loan package, including the appraisal, the process should take approximately 30 days.