The allure of rolling hills, sprawling pastures and beautiful vistas attract people who dream of living in rural settings. However, the path to homeownership for those who buy property with agricultural zoning is often more complicated than buying an existing home in a suburban neighborhood. In many places, the use of land classified as agricultural is discouraged or prohibited, unless the owner has a permit for non-farming activities like building houses and other structures on it.
Achieving this goal requires careful planning and understanding of local laws and regulations. Luckily, the government-sponsored mortgage finance corporation Freddie Mac has guidelines in place to help guide buyers who want to build on farmland. Among them, the agency offers advice on how to find an appraiser who is familiar with agricultural zoning and how to avoid violating the terms of a loan with a rural property. See more https://www.sellmyhousefasthoustontx.com/we-buy-houses-royse-city-tx/
Local zoning ordinances regulate the type of uses and activities allowed on residential, commercial, industrial and agricultural properties. These rules set boundaries and limits on land use and development to promote community wellbeing and preserve open spaces. Generally, properties with agricultural zoning are restricted to the production of crops or other agriculture-related activity for income and profit. The regulations also protect farmland from incompatible land uses and prevent conflicting developments in rural areas.
While agricultural zoning does not necessarily prohibit the construction of dwellings, it typically discourages such activity and allows only certain types of buildings or structures on the property, like barns, silos and equipment sheds. These structures are essential to agricultural operations. Additionally, agricultural zoning may also allow limited retail activities that sell directly related products to the farm’s agricultural output, such as farmstands and markets. It may also encourage timber harvesting on forestland.
Depending on the zoning regulations, farmers and landowners may benefit from special tax treatment and support programs. For example, some municipalities allow agricultural land to qualify for a lower property tax rate than other residential areas, while others offer assistance for reestablishing and improving farming in urban and rural regions. In addition, the government has established a program that offers financial incentives for the purchase of agricultural properties and helps farmers access federal loan programs.
If you’re interested in buying property with agricultural zoning, it’s important to consider the local zoning laws and regulations. A real estate attorney can provide valuable guidance on navigating this process and helping to ensure compliance with the law. They can also recommend an experienced appraiser familiar with the intricacies of agricultural zoning and land use regulations.
When you’re ready to start shopping for a home, an experienced and knowledgeable real estate agent can help you navigate the process. They should be familiar with farmland and understand things like soil types and makeup, as well as water access and rights. They can also assist you in finding a lender that is qualified to loan on rural properties with agricultural zoning.