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Honored Advisor
Posts: 11,091
Registered: ‎05-13-2010
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Re: Do guys go broke anymore

As i understand it, those towns have to be under a certain size, so still classify largely as "rural."  When we moved from VA to NC 16 years ago, we encountered the sight of a lot of farm families living in small towns, not on their land.  It was odd to us, as almost everyone lives on their homestead back where we come from.  I can see where it makes sense for Farm Credet to finance is such circumstances. 

Also, getting comps to suit Fannie Mae and Freddie Mac standards for mortgage bundling ( if you actually follow the rules, which apparently is being done in the aftermath of the debacle of unverified income and such) can be exceedingly difficult in the radius standard and time window of so few miles and months and in traditonally-settled communities, such as farm areas.  I could nto find three comps in our whole conthy for the brick 1970s ranch house in front of our place.  It is coming up in an estate sale auction at some point in time, if the heirs cannot successfully challenge their mother's will.  Its value is inflated at present by the housing bubble's influence on the tax bill. 

Of course commercial banks want ag when they need us, and don't when they don't.  We've always stuck with Farm Credit, since they have to stick with us, and we did not have to spend so much time educating the lender.