IS 19 ACRES TOO MUCH FOR THE LOAN

It depends on what kind of loan you are trying to get, whether or not the bank you are applying at can do acreage with a residence, and then what is considered normal in the area of the purchase. For example, I do not like to look at loan applicaitons in my direct area if they are over 5 acres because it is too hard to find comparable sales for the appraiser and most often the appraisal will come in lower than the contract. But if my client is looking in Butler County then I am ok going higher because of a new law in that county that restricts breaking land down to less than 80 acres if the land is currently farm and you are wanting to convert it to a residential tax code. Butler County for my customers is the perfect place to go buy acreage because there will be comparable sales. If I can be of further assistance please do not hesitate to ask.Jeffrey Schnell NMLS-409473BNC National Bank316-206-3158JSchnell@BNCBank.com

Depends on the particular loan you are getting. There are some lenders who will not lend on property over 5 acres or they will only give value to the first 5 acres. For instance a conventional loan does not care as long as the appraiser can find like properties with similar style, square footage, acreage near yours that has sold recently. The issue will be finding properties that have sold near your property recently. The property also has to be non-income producing. Note, that if you have mortgage insurance some mortgage insurance companies themselves may have a limit of 10 acres. So make sure your loan officer checks that out too. Best wishes, Sean

Hi Joe. Basically, as long as the property is conforming to the area, there is no set limit to the acreage you may have. An appraiser will need to provide adequate comparables for their report and if they are not able due to the size of your lot, they will need to use smaller lots and eliminate any additional value for the excess acreage. Good Luck going forward!

As others have said, the issue is comparable properties that have sold in the last 6 to 12 months.