“A little house on a couple of acres.”
If you had asked someone to describe the American Dream fifty years ago, there’s a good chance that would have been their answer. For generations, one of life’s greatest achievements was earning a place to call home, where memories were made around the dinner table, children played until sunset, and the porch light was always left on. Homeownership was often viewed as the result of hard work, sacrifice, and disciplined saving.
Today, the dream of a rural lifestyle remains deeply valued, but achieving it has become more challenging for many families. With rising home prices, increasing land values, and shifting economic conditions, some may feel that homeownership is moving further out of reach.
The path to homeownership may look different today, but so do the tools and resources available to help buyers prepare for it. At Farm Bureau Bank, we believe that with careful planning, a clear understanding of your options, and the right guidance, the American Dream may be closer than you think. We’re here to guide you every step of the way.
Strengthen Your Financial Foundation
Purchasing a home begins long before you start touring houses or submitting a mortgage application. Reviewing your income, expenses, savings, and current debts can help you identify areas to strengthen now so you can approach the mortgage process with greater confidence later.
Start Saving Early
Homeownership involves more than a monthly mortgage payment. Building up savings can help you prepare for a down payment, closing costs, moving expenses, and unexpected repairs after you purchase a home. Begin by setting a savings goal that fits within your budget. Consider opening a dedicated savings account for your future home, setting up automatic contributions, and reviewing your monthly expenses to find opportunities to save.
Build Your Credit
Your credit history plays an important role in helping lenders understand how you have managed financial obligations over time. Focus on making payments on time, keeping credit card balances manageable, paying down existing debt when possible, and being thoughtful about applying for new credit. These small steps can help demonstrate financial responsibility and put you in a stronger position when you are ready to explore your home financing options.
Explore Your Mortgage Options
There are few financial decisions more personal than purchasing a home, and selecting a mortgage is no different. Understanding your mortgage options can help you choose the best one for your financial situation and homeownership goals.
If you’ve been dreaming of a rural lifestyle, these are a few of the many Farm Bureau Bank mortgage loan options worth exploring:
Conventional Loans
Conventional loans are one of the most common mortgage options because they can provide flexibility for a variety of homeownership goals. Whether you are purchasing your first home, buying a vacation property or refinancing an existing mortgage, a conventional loan may be a good fit. For borrowers with a strong financial profile, they can offer competitive rates and customizable terms.
For many rural families, “home” represents more than four walls and a roof. It may include livestock, a barn with stalls, or family land passed down through generations. Residential ag loans are designed for properties where life and land work hand-in-hand. Whether you’re purchasing a barndominium, a hobby or family farm, or an equestrian property, these loans provide financing solutions for homes that may not fit traditional residential lending guidelines.
USDA Loans
USDA loans can help make homeownership more attainable in the communities that keep rural America strong. For qualified borrowers purchasing a home in an eligible rural area, Farm Bureau Bank offers USDA loans with the potential for 0% down, making it possible to purchase a home without a large upfront down payment. USDA loans also offer competitive interest rates and no prepayment penalty for eligible borrowers. Income and property eligibility requirements apply, but this financing option provides an affordable path to putting down roots in the place you want to call home.
Construction Loans
Sometimes finding the right home means building it yourself. Farm Bureau Bank’s one-time close new construction loans allow qualified borrowers to finance the cost of building a home and transition into a traditional mortgage with one application and one closing. Depending on the loan structure, borrowers may make interest-only payments during construction before the loan converts to principal and interest payments after construction is complete.
Your Journey Home
While rural homeownership can feel intimidating in today’s market, taking the time to prepare early, strengthen your savings and credit, and understand your mortgage options can help you move forward with confidence. Whether your American Dream looks like purchasing your first home, moving back to the community you love, or finally building that "little house on a couple of acres,” Farm Bureau Bank is here to help you navigate the process.
Ready to explore what rural homeownership could look like for you? Connect with a Farm Bureau Bank mortgage loan officer to learn more about the financing options available.
All loans are subject to credit approval, verification, and applicable program, property, income, and eligibility requirements. Rates, terms, conditions, and programs are subject to change without notice. Additional restrictions may apply.
Tags: homeownership, mortgage, rural