Financing a Home With Land in California

Explain how the property is used

Tell us about the residence, outbuildings, any agricultural activity, rental uses, and additional parcels. A home with extra land may require a different review from a working farm or primarily commercial property.

Fannie Mae’s appraisal guidance looks at the property’s residential nature, local characteristics, zoning, and current land use. Comparable sales help support how the market values the property.

Review access, utilities, and condition early

For a rural property, ask about recorded access, road maintenance, water supply, septic systems, and available insurance. Bring existing reports and disclosures rather than assuming the lender can resolve those questions after the appraisal.

The required inspections and documentation depend on the program and property. A working well or septic system still needs whatever evidence the transaction requires.

Give the appraisal time and useful information

Unusual parcels or improvements can make comparable-property research more involved. Provide accurate parcel information and details of permitted improvements.

Avoid a blanket assumption that a residential program has the same acreage cutoff as another lender. Ask for a review of the address, use, and selected program before making a financing-dependent commitment.

Useful items for an initial review

• Property address and parcel numbers.
• Listing, disclosures, and any well or septic reports.
• Details of road access and maintenance agreements.
• A description of residential, agricultural, and rental uses.

Sources and program details

These references support the program details discussed above. The program selected for your loan and its current requirements control your application.

• Fannie Mae: neighborhood and rural-property appraisal considerations