Why Is It Harder to Get Financing on a Property With Animals?

One thing that surprises a lot of buyers looking at rural properties is that financing can become more complicated once animals are involved.

People often assume that if they qualify financially, the property itself shouldn’t matter very much. But when lenders review a mortgage application, they’re not just evaluating the buyer — they’re also evaluating the property and how easy it would be to sell if something went wrong.

That’s where properties with animals can sometimes create challenges.

One of the biggest concerns lenders have is what would happen if the homeowner stopped making mortgage payments and the property went into power of sale or foreclosure. If there are animals on the property, the lender may potentially have to deal with issues around care, relocation, liability, or displacement while trying to take possession and resell the home.

From a lender’s perspective, that adds another layer of complexity and risk and to be honest, they don’t want to have to displace the animals!

Another factor is marketability.

Properties with extensive animal setups, hobby farms, barns, or agricultural uses tend to appeal to a smaller group of buyers compared to a traditional residential property. Not everyone is looking for a property with chickens, goats, horses, or farm infrastructure.

Because of that, these properties can sometimes take longer to sell, which makes some lenders more cautious.

This doesn’t mean financing rural properties with animals is impossible — far from it. But it does mean you may have fewer lender options available compared to a standard residential home in town Some lenders are simply more comfortable with rural and agricultural-style properties than others.

The type and number of animals can also matter. A small hobby farm with a few chickens may be viewed differently than a larger agricultural operation with multiple barns, outbuildings, and livestock.

This is why it’s so important to work with someone who understands rural financing before making an offer on this type of property such as:

• Zoning
• Acreage
• Outbuildings
• Well and septic systems
• Animal use
• Property classification

…can all impact financing options and lender availability.

A lot of buyers fall in love with the lifestyle first — which is understandable — but the financing side needs to be considered early as well.