Home mortgage options for a rustic farm

2023-07-29 14:52:32

It is no secret to anyone that most of the Spanish population is concentrated in urban areas, the capitals of the provinces and the coast, but the search for better living conditions related to tranquility and nature have led many preferences to changed. Now the rustic farms are perfect to get away from the city problems and have made rustic floors a priority when it comes to a home.

Generating that the dream of living in the countryside is an attractive option that goes beyond just breathing fresh air, with good investment alternatives to get monetary benefit from the use of these rural lands. What has generated banks allocate a slice of their credit portfolio to mortgages for rustic farms and achieve the attention of a growing mass of people who require financing for a home on rustic land.

Mortgages for homes in rustic farms

Whether you want to acquire a rustic farm to invest in the exploitation of natural resources or as a way to guarantee the stability of your savings, it is important that you know that Now you can take out a mortgage for a rustic farm. With it you will be able to take important steps on the path of living in the countryside and of Obtain the necessary funds to buy or reform a house located on rustic land.

Currently there are special mortgages to buy a rustic farm

The acquisition of rustic properties is in full swing for at least the last 5 years, with a landscape that has been constantly evolving, managing to stabilize and get the interest of many people for requiring mortgage financing for the purchase of this type of real estate. So you will see below what mortgages exist in the current market to buy a rustic property and how they work.

Financing a home in a rustic farm

When buying a rustic farm, it is possible that you will find yourself with the problem of financing and it is that banking entities do not have as a rule to have products destined for construction or investment in rural environments. Which leaves you with the need to visit several banks and clearly state your situation to verify the various financial products they can offer you..

Mortgage requirements for rustic farms

The simple fact of being a mortgage does not make them very different from the others or from the requirements established to mortgage an apartment, although As it is a special type of terrain, there will be some differences related to the moment of contracting the services of this type of mortgage loan.

More savings needed

Probably when contracting a mortgage for a rustic property it is possible that you need a greater amount of money saved, this because the bank covers a lower percentage of the real value of the property than if it were a normal home. This financing for a normal house or apartment is in the order of a maximum of 80%, while for rustic farms it will hardly exceed 60%.

Investment in rustic farms has maintained a sustained rise

The repayment terms are shorter

Greater requirements and lower repayment terms than those of a mortgage for a normal home They are also characteristics to take into full consideration when contracting a mortgage for a rustic property. In addition to the fact that many financial entities request the change of status from the rustic farm to an urban farm, which implies a procedure that is different due to the local regulations of each Autonomous Community.

The self-development mortgage for homes to be rehabilitated in rustic farms

A very valuable alternative is the so-called self-promoting mortgage, a bank loan resource aimed at those rustic farms that already have a home and need rehabilitation. This is a mortgage that is granted to those who already own the land to build, although it is not limiting and there is the possibility of an extension in the request that covers the construction of the house and the rustic land.

This type of mortgage offers financing that can solve many problems, although it asks the client for a greater number of requirements, they are fully Aimed at individuals who need to get a home on land classified as rustic and with the particularity that it is a mortgage that is delivered in installments to the client and of course as the work progresses, the release of capital being very common in a trio of installments or tranches.