Buying an Existing Country Home with Acreage: What to Know Before You Buy and How Financing Works
Does living out in the country sound like a dream? Many Americans are transitioning from city life to rural areas due to virtual work, a desire for more space, or a quieter lifestyle.
If you’re considering buying an existing home with acreage, there are several important things to understand before making this investment. From lifestyle considerations to property infrastructure and financing, purchasing a country home on larger acreage comes with unique factors that differ from buying a home in town or building from the ground up.
Buying an existing country home with acreage is both a lifestyle choice and a financial decision. Understanding what to expect, and how financing works, can help you move forward with confidence.
Know Your “Why” for Buying an Existing Country Home with Acreage
Why do you want to buy a home with acreage? Before making the move, it’s important to understand your motivation and make sure it aligns with your long-term goals.
Your “why” might include:
- Planning to raise cattle or other livestock
- Wanting to raise your family in a more rural environment
- Seeking more privacy or land for hunting
No matter the reason, make sure your “why” is strong enough to support the lifestyle change that comes with rural living.
Location Matters When Buying a Country Home with Acreage
The phrase “location, location, location” is especially true when purchasing an existing home with acreage. Rural properties often come with tradeoffs that should be carefully considered.
Things to think about include:
- Greater distance from schools, hospitals, grocery stores, and other amenities
- Typically no HOA, meaning fewer restrictions but less control over neighboring properties
- Responsibility for road maintenance if the property is on a private road
- Drainage considerations if the home is located on a dirt road
- Potential limitations on internet access or cell service
- Living near active farms, which may include early-morning equipment, fertilizer, or livestock odors
Make sure the property’s location fits your lifestyle and expectations.
Deed Restrictions and Zoning Can Affect How You Use the Property
Buying a home with acreage does not always mean unlimited freedom. Some properties have deed restrictions that limit building size, number of bedrooms, or other features. Zoning ordinances may also restrict certain types of livestock or land use.
It is important to review deed restrictions and zoning ordinances before purchasing to ensure the property aligns with your goals.
Maintenance Expectations for Existing Homes with Acreage
One of the most overlooked aspects of buying a country home is maintenance. Maintaining a half-acre yard is very different from maintaining 30 acres of land.
If you purchase an existing home with acreage, you may be responsible for:
- Regular mowing and land upkeep
- Fence maintenance if livestock are present
- Clearing fallen trees or debris, especially on wooded or timbered land
Be realistic about the time, equipment, and cost required to maintain the property.
Water Considerations: Well Systems in Rural Homes
Most country homes rely on well water rather than public water systems. While well water is typically less expensive, it must be tested regularly to ensure it is safe.
Before purchasing an existing home with acreage, it is important to test the well water for minerals and bacteria. Many real estate professionals recommend multiple tests prior to closing.
Septic Systems and What Buyers Should Know
Another common feature of rural homes is a septic system. Unlike city sewer systems, septic systems are maintained by the homeowner.
While septic systems often result in lower property taxes, they do require maintenance and eventual replacement, which can be costly. Testing the septic system before purchasing the home is strongly recommended.
Why Some Buyers Choose an Existing Home with Acreage
Although homes with acreage require more upkeep, they can be a dream come true for many families.
Buyers are often drawn to:
- Peace and quiet away from city life
- Greater privacy and flexibility
- No HOA restrictions
- A more rural lifestyle
For the right buyer, the benefits outweigh the added responsibilities.
Financing an Existing Country Home with Acreage
Buying an existing home with acreage is also a significant financial investment, and understanding the loan process is just as important as understanding the property itself.
A common misconception is that AgSouth Farm Credit only offers land loans. AgSouth also has a mortgage department, AgSouth Mortgages, which specializes in financing existing homes with acreage.
Financial Requirements When Buying a Home with Acreage
Before starting the loan process, it’s important to understand the basic financial expectations.
Key requirements include:
- Minimum of 5 percent down
- Optimal credit score
- Debt-to-income ratio under 45 percent
- Avoid opening new debt or co-signing during the loan process
- Maintain stable employment and a clean credit record
Understanding the Mortgage Process for Existing Country Homes
Purchasing a home can feel overwhelming, but the loan process generally follows a clear path.
The process typically includes:
- Initial conversation about work history and financials
- Completion of a mortgage application
- Loan assessment within approximately three business days
- Submission of required documents, such as tax returns and pay stubs
- Ordering title work and appraisal, usually taking 30 to 45 days
- Scheduling closing with an attorney and completing the loan
Why the Appraisal Is Critical for Homes with Acreage
The appraisal plays a vital role in financing an existing home with acreage. The loan cannot proceed unless the property appraises appropriately.
Important appraisal considerations include:
- The home itself must appraise, not just the land
- The property must be structurally sound
- No active renovations should be in progress
Ensuring both the home and land are in good condition helps prevent delays or issues during underwriting.
Choosing the Right Mortgage Company for Rural Properties
When purchasing an existing home with acreage, it’s important to work with a lender that understands rural properties.
Advantages of working with AgSouth Mortgages include:
- Purchasing the home and acreage in one closing, as long as the home appraises for 35 percent of the loan value
- Experience with larger acreage properties
- A focus on residential-intent rural loans
- A long-standing reputation for consistency and local service
Frequently Asked Questions About Buying an Existing Country Home with Acreage
Is buying an existing home with acreage more work than a traditional home?
Yes. Homes with acreage require more land maintenance, potential fence upkeep, and management of wells and septic systems.
Do country homes usually have public water and sewer?
Most rural homes rely on well water and septic systems rather than public utilities.
Why is the appraisal so important when buying a home with acreage?
The appraisal determines whether the loan can move forward. The home must appraise appropriately, not just the land.
Can I finance an existing home and large acreage together?
Yes, financing can typically be done in one loan, provided the home appraises for a sufficient portion of the loan value.