Broker has a borrower with 166 acres. She says it used to be a buffalo ranch but the buffalo have all been sold so it is not an income producing property. Is the 166 acres a concern when lending on a HECM loan?
We do not have a specific acreage limitation; however, property must be highest and best use as residential. With this much acreage it is a question of whether it is primarily residential in nature. It must also be compared to similar properties with like acreage to support this is common for the market. Of course, nothing in file should reflect this is income producing at all.