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For two weeks our lender has had our contract with a seller to purchase a 2nd home. Purchase is $ 515K and we requested 30 year fixed loan of 412K and have 20% to put down. We have the title to our 1st home– no mortgage, HELOCs or liens. Credit scores are high. Our lender has now told us Fannie Mae guidelines will not allow him to loan on the property because the house sits on 38 acres, and loan needs to be on home on less than 10 acres. He says this has nothing to do with our financial ability to get the loan. Any brokers or lenders out there have current Fannie guidelines that might say this is a lender decision, not a firm Fannie guideline? Is this a new Fannie policy? Or can anyone give suggestions about where to finance this? Property was 1 day from the formal lender appraisal when we got this news.

2 Thoughts on Fannie Mae loan on home with acreage?
  1. Reply
    kemperk
    May 30, 2013 at 2:23 am

    i think the lender is feeling farm, no matter what–or–he is wishing
    to block your purchase so that he can buy it himself.

    find 2-3 other lenders–perhaps even find an atty to help out.
    Sounds like a wonderful deal…………

    available to guide you further

  2. Reply
    Jim
    May 30, 2013 at 3:03 am

    I’m a lender and this is accurate. If anything on that land is income producing you’re pretty much screwed out of doing a conventional mortgage. So if there is a barn, crops, stable, etc. your loan will not fly on a conventional mortgage.

    If it is just bare land, try Wells Fargo, they might be able to get it through. I had one loan where we sold it off to Wells Fargo for about the same acres and it worked out.

    Another option is you could survey out 10 acres including the house, and you’d be fine. And pay for the rest of the land separately

    Yet another option. Depending on what the value is of your current residence you could just take a mortgage out on that for the $ 412k….that is of course assuming your current home is worth at least $ 515k.

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