Best Loan To Use In The Country…

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 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 what type of financing is best to use for your next purchase – shoot me an email or give me a call and tell me about your situation. Even if your in a state I’m not licensed in I’ll at least point you in the right direction.

That’s it for today!