Berkshire Lending

If you need financing to purchase a home in the country then use either USDA, FHA, or VA.

As you can see we didn't mention conventional loans here, The reason is a conventional loan generally will have more restrictions on the comparable sales used in the appraisal.

Specifically conventional loans have a conservative limit on how far they will allow the comparable sales used in the appraisal to be away from the subject property.

For this reason, you often run into a Catch-22 using conventional loans in a rural environment.

…Yes you can use a conventional loan, but if the comps are too far away from the subject property so you can’t use a conventional loan, etc…

Generally speaking FHA, USDA, and VA will accept comparable sales that are “common for the area”. …So, in other words, if the comparable sales are all 5 miles away and that’s what is common for the area – then generally they will accept this.

If you are unsure about what type of financing is best to use for your next purchase – give us a call on 888-875-7675. For more relevant information visit http://www.berkshirelending.com