A hard money lender is asset based. They secure the money they lend to you with the asset. Meaning if you default they liquidate the asset. It is harder to liquidate a rural property simply because the population size reduces the possible prospects to sale the home to.
A hard money lender is asset based. They secure the money they lend to you with the asset. Meaning if you default they liquidate the asset. It is harder to liquidate a rural property simply because the population size reduces the possible prospects to sale the home to.
Typically the requirement is that the city's minimum population is 25,000 OR that is is within 25 miles of a city with 100,000 population. But the numbers vary lender to lender and some will make allow for other compensating factors to offset low population / rural numbers. You may want to try non-QM if hard money rural requirements are giving you a problem.
You can look up definition of rural online, but the reason lenders don't lend in rural areas is it is difficult to find value of the property. Lenders like myself will make exceptions depending on how rural (and yes populations is a factor)