# Help! Real Etate question



## wing_ag2009 (Apr 6, 2009)

I need some help. My husband and I are looking at a piece of property (a home with 18 acres). The home is on a "lot" in a seperate deed from the 18 acres. The home is not ag exempt and the land is. We were going to do a FHA loan since this will be our first home buy. However, the FHA won't work for ag exempt land. My question is, does anyone know of any other kind of "first time homeowner" loans that would get it all bought in one loan that might have similar benefits as the FHA, or would we be better off to just go thru the bank?
Thanks-
wing_ag2009


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## quietstar (Dec 11, 2002)

You hide your location even to your state but ask a question that can be location specific. Don't think I can help you despite my 40 years in Real Estate brokerage...Glen


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## Willowdale (Mar 19, 2007)

I'd be interested to hear answers to your question.

I'll be looking for financing on my 16 acres, including the house that is assessed as being on a 2 acre building lot. I am under the impression I can qualify for the loan based on the building lot alone, as long as the value of the 2 acres plus house exceeds the loan amount (it will). The whole 16 acres is on the same deed, though, so I'm not sure it will work. My situation is different than yours, though, because I already own the property -- don't need to qualify for a loan to buy it (I'd never qualify in a hundred years). 

Wonder if your sellers would sell the house and lot for their full asking price and throw in the rest of the acreage for free? Of course for the loan purposes the house and lot will need to appraise for the full value.

My place is in Virginia, but I think the OP is asking about loan programs in general.


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## NorthCountryWd (Oct 17, 2008)

Willowdale said:


> I'd be interested to hear answers to your question.
> 
> I'll be looking for financing on my 16 acres, including the house that is assessed as being on a 2 acre building lot. I am under the impression I can qualify for the loan based on the building lot alone, as long as the value of the 2 acres plus house exceeds the loan amount (it will). The whole 16 acres is on the same deed, though, so I'm not sure it will work. My situation is different than yours, though, because I already own the property -- don't need to qualify for a loan to buy it (I'd never qualify in a hundred years).
> 
> ...


FHA is federal, so there are only minor differences state to state. The op scenario sounds like there are multiple parcels which I don't think FHA will bundle, but not sure on that. The bold above is the only way it would work. It could also be just different assessments on sections of the larger parcel which FHA will work with.

On yours, I think as long as the highest and best use of the property is single family with 16 acres (meaning you're not the only farm house in the area surrounded by subdivisions, high-rise condos and strip malls) then you should be fine.

Lenders used to try and structure loans on only a portion of a larger parcel to fit people into certain loan programs, however I'm under the impression this was never actually legal. When I appraise properties for mortgage lending and use a FannieMae Form (meaning it will probably be bundled and sold on the secondary market), the entire parcel has to be considered. 

I would contact a few different lenders, both local and national, and hear what they have to offer. There's a program for every type of property nowadays.

Been shopping around lately and in my area on home loans the best deals are from the national lenders, however if it were for land and construction loan the local banks have the best deals.


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## Willowdale (Mar 19, 2007)

NorthCountryWd said:


> I would contact a few different lenders, both local and national, and hear what they have to offer. There's a program for every type of property nowadays.
> 
> Been shopping around lately and in my area on home loans the best deals are from the national lenders, however if it were for land and construction loan the local banks have the best deals.


Great info, thanks! I've gotten financing from a local bank for the duration of this year while I complete major renovations (like replacing a tarp with a real roof on part of the house... stuff I can understand would make traditional lenders leery...). But when the construction phase is done I'll want to refinance the whole deal at a good fixed rate.

How can I find out more about what kinds of mortgages are actually being made now, and by whom? I want to know in advance what kind of product to ask for, given the following situation:

*will borrow less than 50% of total appraised value
*property includes the house plus 16 acres, 12+ of which are farmed commercially
*house is very, very old, with typical funkiness in the level and square-ness 
*all new house systems in 08 and 09, including well, septic, 200 amp electric service, interior wiring and plumbing, insulation, roof (by the end of this year) etc


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## NorthCountryWd (Oct 17, 2008)

I'm not a loan officer, so can't tell you much about individual programs, but you may want to keep in touch with a local mortgage banker or broker you trust and have them keeping you informed. 

Loan programs and rates change all the time so it all depends on when you're ready to refi. Since you are farming on it, a conventional residential loan probably won't fly and that will limit your options. You may want to check with the USDA to see what they offer. There's also a 203k repair program thru FHA, but again, not sure if that would work on an ag property.


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## Farmer Porky (Jul 26, 2008)

You might want to check out USDA financing,I am selling a house FSBO(listed on this site also) and my county (fanklin) is listed in Virginia as qualifying for 100% USDA financing. To find out if this is true for your piece go to the USDA site and put in the homes location and see what comes up. Hope this helps.


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## ChristieAcres (Apr 11, 2009)

I am a WA State Licensed Loan Officer and also Licensed Real Estate Agent. USDA Financing is the best way to go with acreage agricultural land. There are areas zoned rural residential and rural protected that also fall under the USDA guidelines. This can be specific to certain zoned areas, like it is in WA State. There are maps governing areas here specific to USDA Financing. Farmer Porky is right on with his advice. If you go to the USDA Site, you should be able to determine via your address if a USDA Loan would work for your property. I currently have an 18.99 acre property listed (1 Chalet Style Home, a Fixer House, a Commercial Shop---looks like an open barn as it was used to build a sailboat in---3 phase power) that is zoned Rural Protected that qualifies for 100% USDA Financing. This property has 1,500 trees growing for future logging and is in Poulsbo WA.


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