Molalla, Oregon Acreage: Timberland, Farms & Horse Properties

The countryside surrounding the small town of Molalla on all sides is abundant with natural resources including thousands of acres of private timberland as well as expansive commercial agriculture farms. Also popular with equestrian lifestyles, real estate around Molalla is often synonymous with rolling pastures, glades perfect for horseback riding and well-appointed homes on acreage. Perhaps you need a home on acreage with stables and a covered riding arena. Or, maybe acres of stately evergreens surrounding your cozy retreat is closer to your version of ideal. Still others want enough land to simply enjoy the country lifestyle and have a workshop for projects and enough land for the kids to play outdoors and ride quads or dirt-bikes. It’s also worth mentioning that we are SFR certified short sale specialists serving Molalla, OR. As Realtors, we can help you find all these things and more in this rural paradise.

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NOTE:
Information about loans is constantly evolving and changing so this article in no way replaces a consultation with an experienced loan officer who specializes in the financing of country properties. As experienced Realtors and specialists in residential properties including short sale we are well-versed in real estate financing options but we are not “experts” on mortgages and we strongly recommend you work with an experienced loan officer or mortgage banker. If you need help finding such a loan officer for Molalla area real estate loans give us a call and we’d be happy to make a few recommendations (we don’t receive any compensation by referring loan officers). Keep in mind that while banks & credit unions may be excellent resources for credit cards or auto loans but this doesn’t always translate into the best rates on mortgages for rural property in Molalla, OR. Some credit unions may be more like a Swiss Army Knife in that they do some of everything but may not be the best tool for the job in all cases. We work with all banks and financial institutions but be aware that some loan officers specialize in the unique features seen in Molalla, Oregon acreage and horse property financing.

The mortgage calculator included above can be an aid in helping you find your budget when shopping for a home in Molalla but there are other expenses within a home mortgage that you should be aware of. The mortgage calculator includes “PI” which stands for Principal and Interest but the PI figure does not include property taxes and insurance. The mortgage payment that includes factors in the property taxes and insurance is known as PITI (for Principal Interest Taxes & Insurance). Please be aware that unless you pay the property taxes as one lump sump each year your bank will break the taxes up into a monthly fee on top of the PI portion of the payment. Likewise, unless you pay insurance yearly the insurance premium will also be added onto the monthly mortgage payment.

Mortgage Insurance & Rural Properties

It’s also worth noting that “insurance” in PITI often refers to “Mortgage Insurance” and is separate from home owner’s insurance. Molalla loan officers will often abbreviate Mortgage Insurance as “MI”. Some mortgage insurance is backed by the government while other mortgage insurance has private underwriting. Private Mortgage Insurance is called “PMI”. Mortgage insurance could be simply described as “foreclosure & short sale insurance” which insures the bank against some of the financial loss that would occur if you defaulted on the payment. The mortgage insurance generally doesn’t benefit the home owner beyond the fact that the bank would not agree to the mortgage without the insurance. Sometimes, a home owner can have the mortgage insurance cancelled after a loan passes a certain time period, is refinanced, or if there is sufficient equity in the property. Your mortgage insurance will usually be cheaper if you are making a larger down payment and if you have 20% or more of the purchase price as a down payment mortgage insurance is generally not necessary in the first place.

Mortgages For Country Properties

FHA and Fannie Mae offer mortgage insurance associated with the federal government. However, there are special mortgage insurance options available for rural, country properties in many areas. The United States Department of Agriculture or USDA offers mortgage insurance with zero down payment options for qualiying home buyers and country properties that meet certain criteria. In the past the USDA loan program was very restrictive however recently there have been exciting developments making this financing available to more buyers while also allowing more properties including acreage homes to qualify. USDA mortgage insurance rates are often much lower than FHA and also allow the buyer to have zero down payment. The catch for the zero down option is that the bank is much more picky about the property condition because the risks to the bank and to USDA are higher. In years past, USDA excluded any property with barns or outbuildings which may give the property a commercial use. Which made it often very difficult for buyers to get a country home because very often these homes come with outbuildings. However, the USDA has relaxed these restrictions and now allow homes with barns and outbuildings which “do not have a commercial use” which while being somewhat ambiguous does allow for homes on acreage with a barn or shop to be reviewed for USDA financing on a case by case basis.

History, Economy and Culture

The town shares its name with the nearby Molalla River, town and river both derive their name from the “Molala” tribe who lived in the area before pioneer settlement in the 1840′s. Commerce, agriculture as well as natural resource companies support much of the local economy; which historically centered around logging and forest industries. As of the recent 2010 there were just over 8,100 residents of Molalla; although there are many more who live in the area outside the city limits. Although this rural community is famous for its “Molalla Buckaroo” 4th of July rodeo and Independence Day Parade there’s plenty of wholesome, small-town entertainment all year round. Located 18 miles south of Beavercreek, OR by car, Molalla is a very popular area for equestrian families. From events like the high school rodeo to fishing derbies, to holiday events like “Halloween On Main Street”, “Christmas In The City” as well as an Easter Egg Hunt and 2nd Friday events there’s always something fun for the whole family to enjoy.

Molalla, Oregon Real Estate Agents

We’re Realtors serving Clackamas County including Molalla, Oregon. With our background in assisting buyers and sellers in the purchase and sale of acreage, horse properties and farms we have the specific experience vital to protecting our clients’ bottom line. From water rights to zoning guidelines we’ll help you connect with appropriate experts so you’ll be well-informed throughout the process. Living on acreage in Clackamas County is a northwest tradition that we’re proud to keep alive. More than dirt, land can be a place for your family to put down roots and also a valuable nest-egg which may be useful for retirement, or future generations. Let us know how we can help you and we’ll earn your real estate business through hard work and prompt service.

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