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Why Do Mortgage Lenders Not Want To Approve Homes on Acreage
Why is it that homebuyers and homeowners have a hard time financing homes that is build on ten or more acres. What is it with acreage that lenders do not like?
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1 Reply
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Hey Julio,
A lot of it boils down to value – Lenders don’t want a bunch of it tied into the land. Additionally, the more acres, the more probability you have for income producing qualities (hobby farms, horse/stables/equestrian characteristics, etc). I’ve gotten away with 25 acres in the past with exceptions (posted guideline max is 15) but these files have great comp factors (high fico, high reserves/residual income, solid LTVs, etc).
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