Class VI (6) Roads NH - conventional financing roadblock?

Question

I'm considering a property for rehab in southern NH that is accessible by a class 6 road. I'm concerned that this will be a problem for my prospective buyers post-rehab when they try to obtain financing. Does anyone have any experience with this type of situation?

Matt Lefebvre · Answer

Hey @Stephen Polizzi, I'm not sure if its an issue or not... but if it does happen to be, make sure you don't bring attention to it.  If the future buyer goes ahead and asks their loan officer if there's a problem with getting financing because the property is located off of a Class VI road and the underwriter catches wind of it, well now its out in the open and they have to look at that and take it into consideration.  I honestly don't know if that's going to be an issue, but just be careful with what you put out to them.

Stephen Polizzi · Answer

Yeah agreed, more info is needed.  I've got a meeting on Monday at Bank of New Hampshire, it will be on my list of questions.

Troy Zsofka · Answer

Not sure about the financing availability, but it may result in a rate bump for how rural it is.

Of equal importance, it will likely be an issue for homeowner's insurance. It may just mean that the premium will be higher, but if it connotes an availability issue, then that will have direct implications on their ability to obtain financing as well. No insurance, no mortgage. I kind of doubt they will be unable to secure insurance or financing, but it's definitely worth investigating the potential implications before laying cash on the table (or lock it in with a due diligence contingency for this matter).

Lob a call to your banker and insurance agent?