Buying a rustic property, such as a farm in the countryside or a house on undeveloped land, is an ideal option for those looking for peace of mind or to invest in rural properties. However, obtaining a mortgage for this type of property can be more complex than for urban homes due to its specific characteristics and regulations.
In this article, we explore how rural home mortgages work, the requirements and key steps to maximize your chances of approval.
1. What is a Vivienda Rústica?
A rustic dwelling is located on land classified as undeveloped land, which implies:
- Principal agricultural, livestock or forestry use: Buildings must be associated with rural activities.
- Legal Restrictions: Local regulations may limit construction and land use.
- Land-dependent value: The appraisal of these properties is usually based more on the land than on the existing buildings.
2. Is it Possible to Obtain a Mortgage for a Rural Property?
Yes, it is possible, but the conditions are usually more restrictive than for urban housing. This is due to:
- Difficulty of resale: Demand for rustic housing is lower, which increases the risk for the bank.
- Legal restrictions: Limitations on use or construction may affect the value and viability of the investment.
3. Typical Conditions of Mortgages for Rural Homes
Banks usually offer mortgages for rustic properties with the following characteristics:
- Lower financing: Between 50% and 70% of the appraised value is financed, as opposed to the usual 80% for urban housing.
- Shorter terms: Amortization periods usually range from 15 to 20 years.
- Higher interest rates: Since they are considered higher risk, interest rates are higher than in urban mortgages.
4. Requirements to Obtain a Rural Home Mortgage
To apply for this type of mortgage, you will need to meet certain specific requirements:
- Appraisal of the property: A valuation that considers the land and buildings is essential.
- Certificate of habitability: If the dwelling is for residential use, it must have this certificate.
- Financial stability: You must demonstrate stable income and a debt ratio of less than 35%.
- Regulatory compliance: Existing buildings must comply with local regulations for rural land.
5. Necessary Documentation
To process a mortgage for a rural home, you will need:
- Land and property deeds.
- Certificate of occupancy (if applicable).
- Appraisal of the property.
- Licenses and permits for existing buildings.
- Regular financial documentation (pay slips, bank statements, tax returns).
6. Advantages of Rural Home Mortgages
- Access to unique properties: Ideal for those seeking large tracts of land or personal projects such as rural tourism or agriculture.
- Long-term investment: Well-located properties can appreciate in value over time.
- Contact with nature: Perfect for those who want a quieter lifestyle away from the hustle and bustle of urban life.
7. Disadvantages and Challenges
- Legal restrictions: Regulations may limit construction or modifications.
- Lower appraised value: Banks tend to appraise these properties lower, which reduces the maximum amount financed.
- Higher initial contribution: You will have to have between 30% and 50% of the price as a down payment.
- Additional costs: It may be necessary to hire technical or legal advice to ensure that the property complies with regulations.
8. Tips for Obtaining a Rural Home Mortgage
- Choose a specialized bank: Some entities are more familiar with this type of property and may offer better conditions.
- Check the property documentation: Verify that the buildings are legal and comply with local regulations.
- Plan for a larger down payment: Make sure you have enough savings to cover 30% to 50% of the price of the property.
- Consult a professional appraiser: A proper appraisal is key to establishing a realistic value.
- Explore financial alternatives: If you don’t qualify for a traditional mortgage, consider personal loans or lines of credit.
Conclusion: Mortgages Adapted to Special Properties
Obtaining a mortgage for a rustic home is entirely possible, although it implies stricter conditions and careful financial planning. This type of property offers unique opportunities for those seeking tranquility, contact with nature or a long-term investment. With the right steps, you can overcome the associated challenges and enjoy the benefits of having your own corner of the countryside.
