Rural Financing – What to Know!
Rural financing refers to the funding of agricultural or (other rural-related projects) in a rural area. When considering building or buying a home on raw land (raw land = land that has not been developed, subdivided, or improved in any way ie: in its natural state, without any infrastructure or buildings on it) or running a hobby farm, it is important to take into account the all of the factors. Let’s take a closer look at a few. Building on Raw Land Buying a parcel of land and building your dream home is an exciting venture – but here are some key points to consider: Higher down payment (35 - 50%) Higher interest rates Zoning laws and building codes Access to utilities (water, electricity, sewage) Soil quality and topography Environmental factors (flood zones, endangered species, etc.) Permits and fees, transportation access Proximity to amenities (schools, stores, hospitals) Future resale value. Rural financing on raw land typically involves obtaining a loan from a specialized lender or government agency that provides financing for rural properties. The loan terms may vary depending on factors such as the size of the property, intended use, and creditworthiness of the borrower so it’s important to do