Country Home Loan Process

Real Estate Agents, Lenders and the Prepared Homebuyer

Sponsored post: Farm Credit Services of America 

Help your clients secure financing for their country homes. 

Buying rural property is likely one of the biggest purchase decisions your clients will ever make. In addition to helping them find the perfect farm, lot or acreage, you can gain your clients’ trust by recommending the right financing options, too.

Farm Credit Services of America (FCSAmerica) offers financing unique to rural properties with low down payment options. You can help your clients make their next homeownership move by sharing the following step-by-step process for rural home loan approval.                                                                               

Step 1: Submit Application

To begin the country home financing process, applicants must complete the Consumer Loan Information and Authorization for Release forms. They will also need to provide financial documents including tax returns from the past two years, most recent paystubs and an updated balance sheet. An FCSAmerica consumer lending officer will work with the applicant to complete and submit the loan application. 

Step 2: Credit Check & Loan Decision

After the application has been submitted, FCSAmerica will order a credit report and verify the applicant’s debt and payment history. An underwriter will review the loan package to determine whether to approve the loan. If more information is needed to make the loan decision, the loan will be suspended until the information is received.

Step 3: Select Interest Rate

Once the loan has been approved, applicants will work with their lender to select an interest rate product that best fits their needs. FCSAmerica offers fixed, interim-fixed or variable rates and options to convert to another rate product at a later time. As a portfolio lender, FCSAmerica is also able to offer flexible terms for rural property loans including long-term fixed rate options.

Step 4: Pre-Closing

Before closing the loan, applicants may need to submit the most recent copies of any 401K, IRA, stocks and retirement statements, copies of the most recent month’s bank statements and their homeowners insurance agent’s contact information. If the loan is for new home construction, the applicant will need to provide detailed build specs, plans and a construction contract.

All loans require an appraisal under federal law. FCSAmerica has the experience and expertise to value features unique to rural property appraisals such as wells, septic systems or outbuildings.

Based on the property location FCSAmerica will order title insurance or a title opinion.

Step 5: Closing

The final step to homeownership is closing day. Applicants will provide a cashier’s check for the down payment, pay closing fees and work with FCSAmerica and their real estate agent to sign all closing documents.

For new home construction financing, FCSAmerica will continue to oversee inspections and disbursements until construction is complete. New home construction applicants can also take advantage of unique financing features FCSAmerica offers including one-time closing to help save time and lock in an interest rate at no additional cost.

Referring your clients to a lender with rural property expertise can help make their home buying or building experience easier and with less hassle – benefiting you as well as your clients. And, because FCSAmerica financing is locally serviced, your clients can enjoy a long-term relationship with their lender for the life of the loan.

Click here for more information about rural home and acreage mortgages.

Iowa Association of REALTORS

This article was written as a collaboration of IAR Staff members or invited subject matter experts.

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