Special Financing May Be Required To Buy Horse Property
When it comes to making an offer on a horse property, sometimes it is necessary to move quickly on it, especially if it is priced for a quick sale. This means having taken some steps ahead of time.
What are those steps?
The first thing to do is to be pre-approved by a lender. A pre-approval is necessary when putting in an offer to let the Seller know that yes, you are able to purchase the property. This is especially important when multiple offers come in. If no pre-approval accompanies the offer, then chances are that the offer will not be accepted since the Seller has no way of telling whether or not you can afford to buy their property.
For a small backyard facility a conventional loan will work. But what if it is a large horse facility on large acreage? Only certain loans can be used to finance such facilities, mainly farm loans, or commercial loans, if it is to be a boarding/training/lesson stable.
Not all lenders are able to finance the large horse farms. Only certain lenders are able to do these type of loans. How do you go about finding these lenders? The agent with experience in these properties will know who to contact and can refer you to them.
So, when buying a horse property and need financing, find a lender that is able to finance these types of properties and be pre-approved for a loan before your search. This way, when the right property comes up and you must move quickly on an offer, everything will be in place.