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Rural Designation Checker

If you're looking to buy an investment property and you are not sure if it's designated as rural, you've come to the right place.

How to check if a property is considered rural?

Here are the rural designation search tools that we use for our private lending platform:

Why do private lenders not lend for rural properties?

Many private lenders do not provide loans for properties that are designated rural for the following reasons:

Liquidation Risk

If the property goes into foreclosure, there is additional risk because there is a limited market of buyers in rural markets. This is as opposed to larger metro areas with denser populations and deeper pools of active buyers. The lender does not want to spend a long time with a non-performing loan and risk needing to sell below market value because there are limited buyers.

Securitization Guidelines

Many private lenders sell their loans to fixed income investors through a process known as securitization. Securitization, in this context, is the process of grouping many loans together and selling portions as an investment security to various investors through investment banks or mortgage REITs. In order for individual loans to be eligible to be included in a securitization, the loan's underlying asset (in this case residential real property) and borrower need to meet specific guidelines. Most investment property securitizations have specific guidelines that disallow properties considered rural.

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