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The RuraLiving® Home Mortgage is designed specifically for individuals looking to finance properties with agricultural characteristics, while maintaining long-term stability. Whether you’re seeking to purchase a hobby farm or refinance an existing property, this loan offers flexible terms and competitive rates, tailored to meet the unique needs of rural property owners.
Loan Features
The RuraLiving loan offers both 15- and 30-year fixed-rate options, giving borrowers long-term peace of mind. With no minimum loan amount and a maximum loan limit of $600,000, this product is suited for various property sizes and financial needs. The maximum loan-to-value (LTV) is 80%, based on the lesser of the purchase price or appraised value. Borrowers can access up to 95% with combined loan-to-value (CLTV) financing, offering some flexibility for those looking to maximize their purchasing power.
Eligible Loan Types
The RuraLiving loan offers flexibility with eligible loan types, including purchases, limited cash-out refinances and cash-out refinances for eligible expenses. Cash-out refinance proceeds must be used for an eligible purpose and are capped at $100,000 or 25% of the total loan amount, whichever is less.
Eligibility and Property Types
Rural hobby farms are the primary target for the RuraLiving loan, and eligible properties range from five acres to 160 acres. The property should have the ability to generate at least $500 annually. Additionally, the home value must comprise 30% of the total property value, ensuring that buyers are investing in both their land and home. Certain unique property types, such as shed homes or barndominiums may be considered, as long as they meet the program’s guidelines and appraisals.
Ineligible Properties
While the RuraLiving loan offers flexibility for hobby farms, full-time farming operations and properties with more than 50 head of livestock are ineligible. Additionally, townhomes, duplexes, condominiums, manufactured homes and investment properties do not qualify for this financing option.
Credit and Financial Requirements
To qualify for the RuraLiving loan, borrowers must have a minimum credit score of 680 and a debt-to-income ratio (DTI) of no more than 39%. Additionally, borrowers are required to have at least 5% of the purchase price available in liquid funds for the down payment. This ensures that borrowers are well-prepared to manage the financial obligations of owning and maintaining a rural property.
Your Mortgage Solution for Rural Living
The RuraLiving® Home Mortgage is a valuable loan option for securing rural property financing. For IBMC’s RuraLiving® Home Mortgage overview, click here. You can also find the overview on MyIBMCHQ under the Heritage Manuals/Forms section.
For any questions, or to learn more about the RuraLiving® Home Mortgage, contact an IBMC representative today.
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