What is a rural property and why does it matter for lending purposes? Let’s look at how Fannie Mae defines a rural property, but first let’s take a pitstop through three spoof definitions that are commonplace among appraisers. At least a couple of these came from the REAA online appraiser’s forum. Do you have any definitions to add? What issues have you experienced with rural loans?
Rural – If you pee outside and nobody sees you
Suburan – If you pee outside and your neighbors call the police
Urban – If you pee outside and nobody cares
Rural – Green Acres, Lassie
Suburban – Leave it to Beaver, Desperate Housewives
Urban – Seinfeld, Ally McBeal
Pizza Definition: If they deliver pizza it’s urban or suburban. If they don’t deliver pizza, it’s rural.
Fannie Mae and most lenders view definitions of rural, suburban and urban as follows.
Urban – relates to a city
Suburban – relates to an area adjacent to a city
Rural – relates to the country or beyond the suburban area