Close

See current mortgage rates on Zillow Mortgage Marketplace

Is there an FHA loan option for house w/ acreage when land is worth more than house?

I have a buyer client under contract (due diligence period) on a property w/ 21 acres & land is valued twice as much as the home. They only have 3% to put down and every local lender says FHA won't work. Credit Scores around 640. Any creative options?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 19 2010 - Jefferson
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (2)

30% land value to improvement value ratio is general rule of thumb. Some areas the appraiser can justify an increase to the 30% with local market data and similar sales. 21 acres is a push, if you were to side step the land to value ratio, the other item would be will the underwriter  to allow value from all 20 acres (some will only use value of 10 acres), commercial usage, and comparables sales.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 19 2010
Profile picture for shapiroamg
Thats definately not for FHA. Anything else, commercial or hard money, will require much more to put down.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
August 19 2010
 
Related Questions
Is there an FHA loan option for house w/ acreage when land is worth more than house?
Profile picture for Justin Kennedy
Latest answer by Justin Kennedy
August 19 2010 | 2 answers
  • Asked by Erin Groover
  • In Mortgage
  • August 19 2010
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 316 Red Bud Rd, Jefferson, GA Home For Sale
    316 Red Bud Rd, Jefferson, GA 30549

     For Sale: $169,900

    • Beds: 4
    • Sqft: 2360
    • Baths: 3.0
    • Lot: 16117
  2. 29 Thornberry Ln, Jefferson, GA Home For Sale
    29 Thornberry Ln, Jefferson, GA 30549

     For Sale: $169,500

    • Beds: 3
    • Sqft: 1750
    • Baths: 2.0
    • Lot: 8712
  3. 1762 Athens Hwy, Jefferson, GA Home For Sale
    1762 Athens Hwy, Jefferson, GA 30549

     For Sale: $218,000

    • Beds: 3
    • Sqft: 2507
    • Baths: 4.0
    • Lot: 104980