Who Lends on Rural Rental Properties in North Carolina?

We do, in North Carolina, Georgia and Virginia. A rural rental can usually get a rental loan for up to 75% of its value on a purchase or rate-and-term refinance, and up to 70% on a cash-out refinance. That's about 5 points less than a home in town. Rental loans start at $75,000, and they're based on the property's rent, not your income.

What counts as rural

Usually the appraiser decides, on the appraisal report, and some lenders also check a federal list of rural areas. Some lenders don't take rural properties at all, and some only find out after the appraisal comes back. We send rural deals to lenders that take them from the start, so the deal doesn't fall apart late. A good tool to check to see if a lender may consider your property rural is https://www.consumerfinance.gov/rural-or-underserved-tool/.

What makes a rural deal work

A standard 1-4 unit home in rentable condition, with enough nearby sales for the appraiser to value it. Most lenders want at least about 700 square feet, and some cap the lot at 5 or 10 acres. On a purchase, a vacant home can qualify on market rent. On a refinance, most lenders want a signed lease.

What doesn't fit

Raw land, working farms, and manufactured homes that aren't on a permanent foundation and titled as real estate aren't rental-loan territory. We finance rentals across North Carolina, Georgia and Virginia.

Related questions

Is there a lender that does refinances under $100K?

Do you need 20% down for a DSCR loan?

Should I buy in an LLC, and will the loan hit my credit?

Investment property only. Business-purpose loans, never owner-occupied. Terms vary by experience, credit, liquidity, and project strength. Subject to underwriting and approval. Not every deal or borrower will fit every program. This is not a commitment to lend.