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Bare Land & Home Sites
Mortgage Sources Corp Agricultural Division has financing for bare land/lot purchases or rate and term refinances. If you’re thinking of building or retiring to your dream home away from the stressful city to the quiet country life, then this program is for you. There must be the intent to build a primary residence on the property at sometime in the future. When you’re ready to build on the property.
Key Criteria for Eligible Loans
• No Cash-Out loans available on Bare Land• Minimum loan amount $20,000
• Refinances are for rate and term only
• Maximum loan-to-value is 75%
• Loan to value decreases as loan amount increases
• Must be purchased for the intent of eventual construction of a single- family, owner-occupied, primary residence
• Intent to generate a gross farm income of $500 per year required on parcels over $123,500 in value
• Neighborhood covenants cannot restrict agricultural production on land over $123,500 in value
• Must be located in a rural area or town with a population of 2,500 or less
• No seasoning required on down payment funds
• Gift funds can be used as down payment
• Property must have public road access
• Public electricity is required to be available at the subjects property line OR by easement. If by easement, the cost to cure must be provided and the loan amount is subject to be reduced by the amount to cure
• If the property is located in a flood zone, proof that the property contains a site suitable for building should be shown in the form of one of the following: municipal sewers available to the lot, topography map indicating sufficient elevated areas (1 acre minimum) within the lot to accomodate the residence and any necessary septic field, or septic permit from local authorities
Customer Qualifications
• Two years established employment and/or stable income
• Acceptable 24 month credit history with minimum credit score of 620
• Minimum net worth of $50,000
• Monthly Housing Expense to Gross Income ratio of 30% or less
• Monthly Debt to Gross Income ratio of 40% or less. Exceptions to this ratio must meet the following criteria: credit scores above 700; 6 months cash reserves;$4,000 monthly residual income and no delinquency on term debt in the last 12 months.
• Adequate net worth
• Minimum cash reserves equal to two month’s PITI
• Flexibility in above qualifications with compensating factors such as excellent credit, substantial cash reserves or lower loan-to-values.
Loan Products
• Adjustable rates: 1-year, 5-year, 10-year or 15-year with 5 – 25year terms
• Fixed rates: 10-year, 15-year, 20-year and 25-year
