Old Fashioned On Purpose

S15: E13: How to Buy Homestead Land in a Challenging Real Estate Market

• Season 15 • Episode 13

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"I'll never be able to afford a homestead!" It's one of the most common pain points I'm hearing right now and for good reason: the real estate market is tricky. 

I'm happy to be joined by Anna Young today. She's a loan officer with Rural 1st and specializes in helping rural folks find the property of their dreams. We discuss interest rates, the volatile market, plus lot sof actionable strategies for getting closer to becoming a land owner. Don't miss this one!

Podcast Episode Highlights

  • Frustrations on current market and how we got here
  • Will the market stay the way it is right now?
  • Looking at the differences depending on the location
  • Considerations for getting a rural property
  • Tips for first time buyers
  • Role of credit history and how to improve credit scores
  • A closer look at zoning laws
  • Tips about interest rates
  • Details on the loans
  • Trends in rural property
  • Final tips and advice on buying rural property

Resources Mentioned in This Podcast Episode:

Learn more about Rural 1st here: www.rural1st.com

Learn more about the planner here: www.prairieplanner.com

OTHER HELPFUL RESOURCES FOR YOUR HOMESTEAD:


Did you enjoy listening to this episode? Please drop a comment below or leave a review to let us know. This can help other folks learn about this podcast and we also really appreciate the feedback!

Jill Winger:

So, In talking to so many of you, whether via email, or in person, or at conferences, one of the biggest pain points I'm hearing over and over again is the fact that so many of you are looking for a homestead property. You thought you were getting ready to buy 1. you're trying to maybe move into a different size of homestead property. and you're frustrated with the state of real estate at the moment. I know this is a huge sticking point not just for homesteaders, but for everyone. Interest rates feel high, the market feels wonky and so I have been trying to figure out how I can help You guys with this problem for a while now but when people come to me for advice on how we bought our homestead, honestly, I don't have a lot of personal experience in this realm because when we purchased our place back in 2008, the world was very different and the interest rates were different and the real estate market was different. And so I feel a little bit at a loss. So today I am so excited to be bringing an expert on the show to help discuss and problem solve this very topic. So Anna Young is a senior loan officer with Rural First, which serves Kansas, but they have affiliations all over the United States. And so we're going to talk about that. As we roll along here, it's not that you have to be in Kansas to get a lot out of this episode. And prior to Rural First, she has worked as an underwriter, a lender, a business developer. She's done all kinds of roles in this world. And I cannot wait to hear some of her strategies for how we can navigate this market and hopefully get some of you into the homestead of your dreams. So welcome, Anna. I'm so excited to have you.

Anna:

Thanks, Jill. I appreciate you letting me be on today. It's really going to be a fun conversation.

Jill Winger:

It is. Yes. And I've been looking for the right person to have this conversation with. And so this is going to be good. I'm so pumped. Yeah. Thank you. Yeah. So let's just dive right in. I want to start with a bird's eye view because this is the tension. This is the problem point I'm hearing so many people repeat over and over. The, it feels like to us, the consumers, and I'd love to hear your perspective, of course, but we feel like the real estate market's going up up. And people are like, it's never going to come down. It's never going to adjust. And I'm never going to be able to afford anything. So what's your perspective on that situation and how did we get here? And where do you think we're headed?

Anna:

Yeah, sure. So I work for Roll First. Roll First is part of the farm credit system and we specialize in financing the consumer. We're a consumer arm of farm credit, so people who want to live in the country, we finance, bare land. Construction on new homes and also existing homes on acreage. So our bread and butter is that the people who want to live in a rule, a rural area. So that is definitely the people we want to work with. And the people that we are here to serve truly and our job function through our credit, I think. As far as how we got here, there's a lot of things, right? But obviously, if we remember back to 4 years ago, COVID changed a lot of things in the world and definitely ignited a spark, a trend, I guess you could probably a more accurate way to put it, but a trend of people saying, hey, you know what? I don't have to live. And the city, I don't have to live in an urban area. I would prefer to live in a rural area. And so you saw supply and demand, right? So you saw a demand for people wanting to live a different way, wanting to live a different lifestyle. And, obviously there was a lot that came out of COVID good and bad, but this is definitely a trend that has continued post COVID where people are saying, Hey. I have flexibility in my work, or I can do things differently than what I did before, and part of that is I want a different lifestyle from, for my family a lot of times, and that involves moving into an area where there's less people in a more rural setting. Anytime you have that type of shift, which drastic shift, right? And how things that happened prior, anytime you have that kind of shift, you're going to have changes. It's a disruptor. It's a disruptor. And how the market, the real estate market has historically. Historically presented or behaved is probably a good way to say it. So, I would say cobit ignited it and here we are still, you're still seeing strong demand in that marketplace. As a buyer, you just have to be aware of where you're at and be prepared to play in that market space essentially.

Jill Winger:

Do you foresee, I know you're not a prophet I just, I'm always curious, but I don't hold anyone to anything they say, but do you see the market coming down or adjusting at all? Or do you think this is like the new normal?

Anna:

Yeah, that's really hard to say. And I think every marketplace is going to be different as well. So you're going to see. You're going to see markets that maybe they do correct some, right? And when I say correct, maybe demand lessons, right? I will tell you, so I work in central and western Kansas. I feel like demand has been very steady. I don't think it's bonkers like it was at 1 point in time, but it's very steady still. And when I talk to people in my network, realtors insurance agents. Other bankers, I have a lot of friends who are other bankers, too. We don't necessarily work in the same space, but we're still in the lending world. They'll tell you the same thing. It's Hey, we're still seeing steady demand and people are still buying percentually. So that's going to leave those prices where they are. If you have a. Whether there's a drastic shift or not I don't know. I can't speak to that, but in terms of the marketplace, you still have people. I would say that trend is continuing and so prices will align. I do think at least in my area, there's been some. Maybe some properties are sitting a little bit longer, still not long periods of time, but sitting a little bit longer than maybe what they would have a year ago. Higher end properties, higher dollar properties, those are sitting longer, but they're still selling. They're still. Things are still moving, right? So you don't have a slug in the marketplace by any means.

Jill Winger:

I have noticed that here locally that, like you said, the higher end properties aren't going as fast as they were, but it feels like the medium lower end properties are still like selling like hotcakes.

Anna:

Exactly. And, in that realm, one thing to keep in mind there is hey, every time the dollar amount goes up, the pool of buyers shrinks. So I had a guy recently who was looking at buying a 40 acre parcel and he was going to, potentially build on that. He ended up, he was able to purchase a home on 40 acres. For cheaper than what he could have built it for. And so he just shifted gears in his approach. So I think that's the other thing that people, when you're talking about, hey, I'm looking to buy 1 thing I will tell people is keep an open mind. You may have an idea of what you want to do and what you want to buy, but ultimately another opportunity may present itself. So if you're prepared and ready to go. Like this guy, we had talked and he was pre approved with us, but also, so he was ready to go. And so he was able to pull the trigger when he needed to on that purchase, even though it was a shift from what he had originally in his mind planned out. It worked out for it to his benefit. Definitely.

Jill Winger:

Yeah, I think that's great advice. I have also spoken a little bit to that with folks around location, which I know not everyone can just shift location if one location is, a really high market, I see a lot of folks obsessed with certain areas of the country. Like I'm going to pick on Tennessee for a minute. Cause every time I travel to Tennessee, it's like everyone there has just gotten there and everyone wants to move there and everyone is so frustrated by the prices there. I'm like, Tennessee is beautiful, but. Maybe if you can't afford Tennessee, maybe you move to a different state. Cause I feel and I'm assuming you're also seeing just differences in location. I know you're Kansas, but I'm assuming on your periphery, you there's just differences in location and prices in the market and such.

Anna:

Yes, absolutely. And so yeah, if you, so I live just West of Wichita, I cover my so rule versus in 20 States. I cover central and western Kansas. That's my footprint that I cover. But, yeah, absolutely. Even in the territory that I cover. If you're going to be, I'm just outside of Wichita, I live about 30 minutes, 30 minutes in Wichita. If you're within, an hour radius of Wichita, you're going to expect these kind of prices, right? If you're willing to move. An hour and a half outside of Wichita, you can get a great deal, in a lot of in a lot of situations. So I think that is really good advice to in terms of, there are affordable properties, but you may have to be flexible on where you want to live and amenities that you want to have close to you. So there's give and take. It's interesting on that trend to, Is that a lot I would say in the last several loans that I've done, I can think of 1 right now where they're moving from Washington and that was a big part of it. They're retired and they're like, hey, the property is just more affordable here for us. And so we're, we chose to pick up and move. And, Kansas is accepting residents. So come on over, but I say that about real estate.

Jill Winger:

I said about Wyoming, too, and they're like, oh, it's cold. I'm like, yeah, but it's way cheaper than Tennessee and Texas gone out. We are looking for residents for sure. Yeah,

Anna:

absolutely. Yeah. So location is a big driver and that definitely. Yeah. Okay.

Jill Winger:

Good advice. Good advice. I'm curious, can you speak to, let's say someone, maybe they purchased a home in the past, but they've never purchased a rural home or a rural property. What kind of differences or considerations will they need to keep in mind there?

Anna:

Yeah, absolutely. Number one, and Just in general, right? When we talk about rural homes and we finance rural properties, I always tell people, I'm like, we finance the weird stuff. A lot of other banks just don't want to touch. A lot of banks have different rules around, they'll finance a home in a highly populated area. No problem. But when it comes to acreage, either bare acreage or houses, A house on land. They really just don't have a good product for it. So number one, make sure you're with a bank who can handle that rule first said it's in 20 states and we're so always willing our lenders are great and willing to talk to people about their options But I will have that happen a lot where i'll talk to people and they're like, i'm pre approved With such and such bank, and then they, or I was pre approved with such and such bank, and then they realized it was 25 acres, and that doesn't fit in their bucket anymore. And now I have a contract, I'm not approved, like I'm behind the 8 ball, right? Having good, asking good questions up front is really recommended. And ask those questions. If you're buying bare land, and you want to build a house, ask the bank, hey, can you finance the land and the house? And construction on the house, or can and what does that look like? What do I need to do prepared? What preparedness wise? So that I am, if I buy this land, I can realistically build a house. And so those conversations go together, or if I'm buying land in a house, hey, what are those terms look like? Because a lot of times. Like, all of our loan products are conventional, so we don't have a, you know, or those kind of the products are different. A lot of times, just from a financial position, you have to be prepared differently with down payment options. Or if you're selling a house, right? So having, sometimes I tell people it's like a buying strategy. And and it's worth the time to do it. Cause it, especially, go back to what we're talking about with a competitive market. And so if you have a strategy and you have a plan, you can definitely, and it enables you to act quicker and faster and more confidently too, you feel good about what you're doing.

Jill Winger:

Yes. What's the considerations? I'm thinking in like specifically first time buyers because and forgive me, because I am not a, this is not my zone of genius. My brain does not retain this sort of information, but yes, thank you. But 2008, when we were buying our property, it was our first home that we purchased. And so we initially were like, oh we're going to get some of the first time home buyer stuff. And then when the bank, like you said, the bank found out. Excuse me, that it was 60 acres. They're like, so nope. And we had to do, I don't even remember the process, but it was a lot of loopholes and hoops. And it was a whole thing. So if you are going to buy your first home and it is a rural property, can you walk us through what that might look like?

Anna:

Yeah, absolutely. Let's say, let's just for the sake of example, we'll go back to my guy who's buying a house in 40 acres, right? And a lot of the 60 acres, right? They're going to be, they're going to be larger acreages. So what you'd be looking at terms wise, we require 15 percent down. And that's going to be, based off the appraised value of the property. So just keep that in mind if you're in a competitive situation, and you overpay for it, and it doesn't appraise. It is based on the appraised value, but 15 percent down we do not have, we are different from a commercial bank in terms of we don't have like PMI private mortgage insurance. We do not, or we're not, our loans are not subject to that. That is 1 thing that is different, but the down payment is going to be higher in terms of if you're a 1st time home buyer, then some of the other more conventional products, if you were buying a house. And in the city in a highly populated area, potentially now, I will tell you, if you are, a lot of these people. If you're a homesteader, if you have farm income, right? A lot of times you may, it may open a door with the farmer service agency. We do work with them sometimes on 1st time. Purchases, but they have an eligibility. Box 2 in terms of hey, to be not everyone is eligible for their loans. But I work with a lot of people who are involved in agriculture in some way, or they've worked for a farm, or maybe they have, in some ways they've been involved in agriculture. And so we are able to work with FSA on some of those purchases. If they're purchasing different kinds of property, I will say that's probably a minority type situation, but it's always an option to work. Option worth looking into.

Jill Winger:

So with that FSA, would they need to potentially, because that's the tricky part that I think a lot of homesteaders, the bucket we find ourselves in, we are buying little ag properties in ag zoned areas, but we're not necessarily commercial ag. So it's this weird gray area. So what would you need to show to the FSA if you were going to be trying to tap into that eligibility? I'm sure, I'm guessing it varies, but could you give us kind of some higher level?

Anna:

Yeah. And like I said, I'm. I don't actually originate those loans in every county would have a different office that they would work with for eligibility reasons. But the ones that I'll find a lot is where, hey, I'm. I have worked for a farmer or farm operation, so I have a history in farming and so then they would be eligible for their programs or. Sometimes it's just use of the property, I'm going to operate the land. So let's bear land. You're going to have a better chance. Let's say, I'm going to operate the bare land and they will have programs for those as well.

Jill Winger:

Okay, so that might be a path for someone if they're struggling to, because I do have, I have that question a lot too. I'm so glad you brought that up. They're like, okay, should I buy a property with structure or should I just buy a blank slate? And I'm always like it depends. But if they are having trouble with a financing, potentially that bare land may be an easier way to get their foot in the door.

Anna:

Yeah, and we can help them with both. In terms of bare, sometimes the option is, hey, buy bare land first find the property that you want to, that you want to build on and, I'll encourage people we don't have a build timeframe on our loans, so you can say, hey, I'm going to, I found the 60 acres that I want to build on eventually. But, and then I'm going to have a three year plan or a five year plan to get out there and get my house built or get the property established. And so I will tell you, and that's why I say sometimes it goes back to just an overall strategy, right? So it's Hey, maybe I can't do everything today. Maybe you can, but if you can't, okay, what's a good plan to get where I ultimately want to be. The bare land, same thing. We can do 15 percent down if you're just looking at bare land. So I'll have a lot of people who will say, okay, I'm going to buy my 60 acres. I want to build in three years. By that point, I'm going to have the land paid for, or I'm going to have a significant amount of equity in the property. And then the next phase is I want to build a barn, right? Or the next phase is I want to build a house. Okay. And so from those piece from those, the strategy piece comes into play, but you can definitely start with land. So I think the other time, but something I experienced with people sometimes is they get overwhelmed. By the whole thing, right? So it's hey, if you break it down into little. Bite sized pieces, right? Then it becomes more digestible overall. And it definitely, I definitely would say, yeah, land first. So I found the perfect property. Let's figure out how to get that bought and done. And then you can move on to the next phase in terms of, okay. And then I want to build my house. Let's figure out what I need to do, what steps I need to take financially to make that, that happen as well. So overall, you can have a plan overall in terms of how can I reach my goal of living on the land, right? Which ultimately is what people want to do.

Jill Winger:

Friends, I'm interrupting this episode because I have a big announcement today, one I've been waiting to tell you about. The 2025 Old Fashioned On Purpose Planner is here. It is ready for you to order. We wanted to get it out earlier than ever this year, so you have plenty of time to start thinking about 2025. 25. And I can say without a doubt, this is our best planner yet. We took all the features you love from previous years, plus some things you've been asking for, and rolled them all into this edition. So the first thing you'll notice, there are tabs. Hallelujah. We have tabs for all of the months and the sections. That's been a huge sticking point for so many of you. We finally got it done. The cover is durable PVC. The paper is Luxurious. If I do say so myself, it's thick and silky and it's not going to bleed. We have monthly spreads. We have weekly spreads. We have spots for your menus, your garden, your kitchen, your animal records, what you're reading, your goals for the year, your project mapping. It's all in here and lots more. This is almost 300 pages of organizational goodness, and it will help keep your old fashioned life on track. regardless of whether you live on a hundred acres or you're homesteading in your backyard. So we have a set number of these that we have printed. We will sell out this year, so don't wait too long. Head on over to prairieplanner. com to get a full look at the inside of all the features and to get your copy. Also, we have a special limited run of some Custom planner stickers, um, that you can add on to your order. We're selling out of these as we speak. So if you want the stickers, definitely grab your planner sooner versus later. Prairie planner dot com. I cannot wait for you to try it and definitely post some pictures and tag me over on social once you start putting all of your old fashioned goodness inside. Okay, so my next question is, what role does credit history play in securing a loan, and if someone maybe has. Not perfect credit history, credit score. What are some steps they can take to help with that?

Anna:

Yeah, that's a great question. And credit does, we, we are a lender that uses FICO scores for part of our credit approval process. That's very common in the industry as well. I will say if you have no credit score, we can work with you still, we have a manual underwriting process and I will have those folks every once in a while that pop up and they just say, Hey, I don't, I have never borrowed money and I don't have a credit score. No problem. We have a manual system, manual underwriting system. So it doesn't just throw you out of the gate. If your credit is below our standard, what I encourage people to do is to get their credit score up. Ultimately, it saves you money on interest rate, but it also saves you a lot of headache. So if people's credit is low, what I would encourage them, number one thing is your credit score is made up of several parts ultimately is how it works, but the biggest one is just paying your bills on time. So the biggest thing that's going to impact your credit score is to get your bills paid on time. And then the second piece that you need is time to show that trend that, Hey, I've been paying my bills on time. So if people's credit scores need some work, that's what I'll encourage them. I'll say, Hey, take six months, take 12 months, whatever you need, get your bills paid on time, take care of business. And get your credit score up, and then we can move on to the next part of the plan.

Jill Winger:

I think that's a great actionable, tangible step for folks who are feeling antsy to start the process, but they can't do it right now. I think that's a great, yeah, that's a great thing to add to the to do list is just to get intentional with that. You can feel like you're making some progress. Yeah.

Anna:

Yeah, exactly. Exactly.

Jill Winger:

Okay, so zoning. This is a big topic in the homestead world. Because I think we, most of us are looking at adding animals to the property, different structures and zoning can be pretty restrictions. So restrictive rather. So what should prospective buyers know about zoning laws? What should they be asking before they buy? And especially how can that affect a loan on the property?

Anna:

Yep, you bet. So this is where if you're a buyer, it's important to have a good network, right? In all things you're doing. So make sure you have a good lender, make sure you have a good realtor. Your realtor is going to be someone who can really help you with the zoning piece of this. And if they can't answer your zoning questions, maybe it's time to move on to the next realtor. They're going to be a good, a big help for you. I know ones that I've ran into before, and there are certain counties that require so many acres to build. To have a structure on the land and I've ran into that before. They'll call me and say, hey, I'm buying in this county. It's this many acres and I'll ask them how it's zone if they don't know. You can always call your county officials. They'll be able to help you with that. There's, you're there's several departments within the county municipalities that handle that piece, but so knowing how it's zoned and knowing that before you buy is really important. So just a little bit of due diligence. And like I said your network can always help you with that as well. And that example where they didn't have enough acres to build they call me, hey, I'm getting a great deal on this property. And I'm like, you're getting a great deal because you can't build on it. And I was like, yeah just doing some due diligence before you sign a contract to get things in motion can save you a lot of headache down the road. If there are restrictions, those are all going to be. Those are all going to be legally known. So there's a way to get that information before you find yourself in. Hey, I purchased this property and now I can't do anything with it. So that's so just a little bit of homework and create, get your network in place to help you if you're feeling overwhelmed. Again, that can be 1 of those things that can be overwhelming, but a couple phone calls. A good realtor can really help with that situation.

Jill Winger:

Yeah, that's great advice for sure. I do think, like you said, it was too good to be true. Maybe do some checking. Yeah, I've heard similar stories where they were all excited and oh, but there's a giant easement through the middle of the property or it's like, there's like a nuclear waste plant next door. I'm like wait. There's a reason it's. It feels cheap, so

Anna:

yes, exactly. Yeah. Homework's important and can save a lot of can save a lot of headache. That's for sure.

Jill Winger:

Yes. Yes. Okay. So the big, I think the big elephant in the room for many people. And honestly, we've been trying to sell, or we were trying to sell a commercial piece of real estate a few months back. And we had a lot of prospective buyers, but everyone got really frustrated with interest rates. Like they're ready to buy, And then they'd go to their bank and they're like, Oh, their interest rates are so high. So I imagine that a lot of, residential rural buyers are also feeling that pinch. Do you have any advice? I know interest rates are interest rates. Do you have any advice on that? Any words of wisdom or comfort? Do you think they'll be adjusting anytime soon? What are your thoughts on that topic?

Anna:

You bet. You bet. Rate wise, I would say over the last 30 to 60 days, Long term fixed rates, which is what I'm dealing with all of our products that we're recommending. They have a fixed rate with them. And that is what I recommend people utilize on a. When, whether they're purchasing land or building a house or buying a house that they're using a fixed rate. Over the last 30, 30, 60 days, we have definitely see rates start to trend down. And compared to, same time last year even same time, 6 months ago, or excuse me, even 6 months ago. So you've definitely seen rates trend down, whether that continues in the future is really hard to know. If I knew that, I'd love to tell. But yes, sure. But, in terms of, I can say over the past 30, 60 days, you've definitely see that trend. Trending back down now, back down to historic lows. No but down substantially compared to, they're a percent lower than what they were 6 months ago. So that's a big number. The other thing I will tell people is that, okay, so I've been a loan officer for 11 years and over the course of 11 years, there have been multiple ups and downs rate wise. So it's like a roller coaster. I think people feel like there was 2 timeframes, right? It was like, pre coven and post and pre coven. It was. Or, post there was this low period and a high and now it's a high period. That's not really true. And, I can think back to february or January of 2020, and we were anticipating rates to be in the sixes that year, right? And then they obviously were not. But so I guess when you think about the rate market, don't get stuck in that land of there's low rates and high rates. And now I'm in high rates, right? You have to think of it in terms of things ebb and flow. And if you really love a property, and you are prepared financially to purchase it. You can always refinance. You can always access a lower rate if they dip in the future. I think there's an expression. It's by the property date, the rate and that's true to an extent. But I think also. Again, if you're prepared and ready to go for the right property, the rate. Is a secondary thought, right? If you are prepared financially, and then you always have the flexibility to move down. We offer a really great rate conversion option for us where people can. They have the option to lower their rate once a year for a flat fee. They don't have to refinance. Nice. It's a really nice perk for our customers. It's an interest rate conversion is what it's called. So we do offer that and it's a great way for people to do that very quickly and very cheap, very affordably. So we offer that. And it's another thing, you know what you're getting into in the beginning when you're purchasing that, when you're purchasing that property or home.

Jill Winger:

I think that's such great advice. And I was talking to one of my really smart business friends a couple months back, and he was saying that same thing. Like it's been, rates have been so cyclical, and we get so like on this magnifying glass of this one period of history. And this is, where we're at now is the worst or whatever. And I think it's such great advice just to keep looking back at the roller coaster and see the bigger trend. And also, if you do love your property that you're looking at, don't let that stop you. I love that you have that option where they can adjust it down without having to do a full refinance. It's brilliant. But yeah, thank you for that. I think that hopefully will give some comfort to a lot of people who are pretty wound up about that. Yeah, sure.

Anna:

Good. I hope so.

Jill Winger:

Yeah. Okay. So if someone is looking at real properties, would like the presence of existing structures, let's say barns, wells, off grid systems, things like that, would that affect the loan approval process in any way?

Anna:

Not for us. We, a couple of things. We are rural lender. Like I said, that's our bread and butter. And so we love acreage. We love outbuildings. We love farm facilities. We're good with all that. So those things don't. Do not throw loans out of our bucket. We know what to do with it. We're used to that type of collateral. And we can finance. Sometimes all people, they're buying a property and it already has an existing barn on it, right? Or shop or shed what I've learned. I roll 1st is there's regional differences for what you call outbuildings, but, it may have a structure on it and then they want to their next step is to build a house. Or it has small cattle facility, something like that. That's, it does not change the parameters for us or our loans. If it's bare land or a home, those things are completely within our normal realm of dealing with.

Jill Winger:

And that might be one of the benefits of going with a lender who specializes in rural versus a standard lender. Cause that's not going to trip you guys up. Maybe it would trip up another situation.

Anna:

Exactly. The other thing we can do is that we're very flexible once you're in the property. So a lot of times I'll finance. It's bare ground, then they build a house, then they come back and they want to build a barn, right? Or they want to build a barn and some outbuilding structures, whatever it looks like for their operation. And we can handle all of those pieces, or they'll buy, hey, I bought 30 acres and now the 10 acres next to me is coming up for sale, or my neighbor wants to sell me the 10 acres next. Great. We can handle all those pieces. Because we are very flexible. We hold our loan paper. We're not selling your loans, so we have that flexibility to work with people and we understand it's a lifestyle, right? So it's not just a one time thing. There may be other things that come up over time and we want to be there to support our customers in those needs.

Jill Winger:

Okay. Great advice. This is more of just like a personal curiosity question because I just love this kind of stuff. What kind of trends are you seeing now in rural home, oh my gosh, rural homes and what people are buying? What people are liking? Do you see any, I just love to see any patterns or hear about any patterns that you're seeing.

Anna:

I'm so glad you asked that. Yes, we do. So you're always going to have your traditional stick built home. People still love those. So that's still definitely happening. We've seen a ton of, or not a ton, but we've definitely seen an increase in or barn dominion type structures and barn dominion can mean a lot of things to a lot of people, right? Sometimes it's a stick built home and they just are putting 10, it's 10 siding, 10 room. And sometimes it's a true bar dominion, and we can find we treat those like a conforming stick built home. We finance a ton of those. And a lot of times it's a lifestyle thing, right? There's some really cool bar dominion structures out there. Sometimes people use it as a. Again, if you go back to strategy, right? It's just a step along the way. It's hey, I'm going to build. I'm going to buy the property I'm going to put up a shed. And then, or with living quarters, and then I'm going to build a house, right? So we see it in multiple facets, but that is definitely a trend. That we are seeing it's popular and we. Have no issues with them, we're very flexible on. Working with our builders and customers who want to build our dominions. I will say one thing for my territory, and this may be common in other areas as well. I feel like 1 reason far Dominions are popular in less populated areas is because traditional builders sometimes can just be harder to access. I know when I get into Western Kansas, sometimes people are a year, two year, three years out for a traditional custom home builder where a Barndo builder can get in there sooner and faster or sooner and faster is the same thing, but they can get in there sooner.

Jill Winger:

That's interesting. I've been seeing a ton like on Pinterest and just like even on Facebook the algorithm has been showing me a ton of barndominiums lately. So it's interesting that you say that. Yeah.

Anna:

It's fine, Jill. Maybe you have a barndo in your future.

Jill Winger:

Gosh, if I have any more building projects, I will just. Sinks maybe down the road. Interesting. Interesting. Okay. I'm trying to think as we wrap up here, we've covered a lot of good grounds. Any other bits of advice or thoughts that maybe we haven't covered that you want the audience to know if they're in this position, looking to buy rural in the next little bit?

Anna:

1 thing I would say, I think in this. Just encourage people to when you're when you have a goal in mind, it may take sacrifice in other areas and then the steps of homework and being prepared. It goes together. If you're saying, hey, I want to build a house, or I want to buy a piece of land. And I, it may mean, hey, I'm putting off. This vehicle purchase, or I'm putting off this in my life for a while. Not forever, just for a while, so I can get this done and. Just encourage people to have, some, a plan from that standpoint in terms of overall. And the other thing I would say is get pre approved. It doesn't cost anything to talk to a lender and get a pre approval in place. Our pre approvals are good for six months. So it gives people, and I really like that personally and as a lender, because it gives you a nice runway to act on. So you can have the underwriting. It's Hey, I know I want to purchase something and my budget is 500, 000, right? So I'm pre approved for this dollar amount. I have my down payment. But the other thing it allows to do is to really talk about, hey, what does this plan look like? If I buy this, am I selling another property? Am I not selling another property? Or what's my plan B? Do I need a bridge loan? If I'm building so you can have a full plan in place. And we don't charge for our pre approvals. So it allows a lot of flexibility. And like I said, just a nice runway. If you're looking at, Hey, there's 10 different properties I'm looking at, right? Great. You're good to go. And then if you get out there and you love the property, you can slide that realtor, your pre approval letter and get a contract right now. So it speeds up. So taking some steps on the front end can really speed up the process and make for a really smooth transaction. That's great advice.

Jill Winger:

And just as I love action steps, and I always love putting a nice bow on these episodes where people can really do something tangible. So you've given a lot of good tidbits here. So as I've just been jotting them down if someone's looking to buy, let's say the next one to three years, You said have a plan, right? So be ready to make those sacrifices and be thinking ahead. You said get that pre approval. You said work on your credit score. If it's not ideal, you can start paying bills on time. Just making sure that's all nice and shiny. Is there anything else you would add to that list?

Anna:

Sometimes it's just as simple as making a phone call and I would say it may you may not be ready to get pre approved, but you can definitely go ahead. Go ahead and make that phone call to, I'll talk to people and we don't actually do anything for a year or 2 years or, I got a text history to a guy. We've been talking for a year. And that's fine. The lenders that roll 1st, we are definitely here to help people and you have a. Here to serve our rural communities and the people who, who live in them or want to live in them. And make a phone call, reach out and you can definitely get that plan in motion.

Jill Winger:

Yeah, awesome. And sometimes those little baby steps of action. I preach this all the time. That's just all it takes to get that little bit of motivation rolling, that dopamine hit, and then you start doing other things to get you there and it can turn that big fuzzy dream into something that's real a lot faster than you think.

Anna:

Yeah, I like it. Absolutely. Absolutely. And then go to our website. If they're, like I said, we're in 20 states rule. 1st is based out of Louisville, Kentucky, but it serves a lot of farm credits over the footprint of the U. S. partner with rule. 1st for their consumer solutions. And so just go to the rule 1st website, and you'll be able to enter your zip code and find, who's the closest person that I can talk to. People are in Kansas. Just give me a call. I'm happy to talk to them or want to move to Kansas. I'll put my shameless plug back in. But there you go. Happy to talk to people.

Jill Winger:

And that was my next question is, okay, so go to the website. That's the best way to connect with either you or someone in row first. And then can you just Spell out the website for us. I'm going to put it in the show notes, but in case someone's driving and they forget later, I just want to get it in their brain. So if they want to try to remember that.

Anna:

Yes. It's just rollfirst. com. R U R A L, the number one st. com. So it's very simple. You can go enter a contact me, put in an inquiry to be contacted and a lender will reach out to you.

Jill Winger:

Fabulous. Anna, this was awesome. And thank you for answering some of my own questions. And now I have this episode to point people back to when they asked me, how do I buy a homestead in 2022 new for, and I'm like, I don't know. So I'll be like, Anna does though. So go listen. So you're

Anna:

welcome. It's been great being on and it's always fun to do these kind of things, farm credit is a mission based lending institution. We're a cooperative lending institution. And I really feel like serving, rural America through rural first has been one of the best, one of the most rewarding pieces of my. 11 year, 10 year with farm credit because you really do get to serve rural communities. And so yeah, anyone who wants to join in that rural lifestyle style, we are happy to help them out. Yeah.

Jill Winger:

There are different kinds of people. I agree. They're my favorite people. Yeah.

Anna:

All to the earth kind of

Jill Winger:

people.

Anna:

That's what makes it fun. It makes it fun to work with those kinds of people.

Jill Winger:

Yes, I agree. Thank you again for coming on and folks, if you have questions, if you're looking to start that ball rolling, take that first action step, rollfirst. com. We'll put that in the show notes. It's a great place to start. So thanks again, Anna. Thanks so much, Jill. Take care.