Have you ever heard of a Land-to-Dwelling ratio? It’s when a lender considers the value of the home (dwelling) in relationship to the value of the land for large acreage properties. Since the home is the largest part of the collateral for a home loan, the lender seeks to make sure that the acreage isn’t worth more than the dwelling! Questions? Comment Below!

Related Article Title: Acceptable Land-to-Dwelling Ratio – Fannie Mae Question:  What is the acceptable land-to-dwelling ratio for homes on large acreage properties? Answer: Neither agency enforces nor even implies that there is a specific land-to-dwelling ratio, but they do talk about how the neighborhood is ‘built-up’, which really means the appraiser should be looking at […]

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