Rural Property Mortgage Alternatives when Buying Your Dream Home

Obtaining a rural property mortgage can be a dream for some people who want a slower and quieter life. However, circumstances sometimes don’t allow you to go down the standard route. But it doesn’t matter because there are some alternatives you can use to secure your dream home. From developmental funds to short-term bridging loans, here are some examples.

Shared Property Ownership

You may not be aware that you can forgo a mortgage and buy shares in a property instead. Home builders will lease homes to customers based on shares, which you can gradually buy to 100% over time. Of course, you also have to pay rent, but this decreases as you buy more shares. Known as shared ownership staircasing, this is a viable alternative when you don’t have a downpayment available, and you may even be approved with a low credit score.

Agricultural and Smallholding

When you think of a rural property, certain things come to mind. Farming, animals such as horses, and working the land are common images of the American Dream in places like the Midwest. If you plan on using your property for things such as agriculture, you can apply for smallholding mortgages. These are based on the value of the land and can even account for seasonal income when working the land as a farm or ranch that is dependent on seasons.

A Rural Property Mortgage for Development

There are many rural homes in the US, and over 1.62 million are believed to be in decline between 2013 and 2023. However, you can apply for developmental finance to repair your rural home if the property requires significant construction, which includes common projects such as a barn conversion. These types of projects are seen when bringing an elderly parent to live with you, or when making the home safe to move in and eventually raise a family in a dream house.

Short-Term Bridging Loans

The transition between homes when selling and buying can be a stressful time, and some even believe that moving from home to home is the most stressful thing you can do. On top of the logistics of moving, there are also added financial problems in most cases. However, you can obtain a bridging loan that can help make the transition smoother. This is a suitable method when the new property needs renovations or when a land purchase is time-sensitive.

Equity Release and Second Charge

If you own another property, you can take out a loan against it to buy a new one. For example, maybe you are moving from the city to a rural location for a quieter life. City property is usually much more expensive and desirable to buyers, and brokers will be keen to work with you. A second charge or equity release based on your other property can be a quick and easy way to find the funds you need to buy your dream home and begin life as a rural homesteader.

Summary

Shared property ownership, known as staircasing, is a suitable alternative to a stranded rural property mortgage that can help you begin a new life. You can also apply for developmental mortgages if the property needs work, and funds can be secured against existing property.