Thinking about a home with elbow room, irrigated rows, or space for a workshop in South Valley? If you are drawn to acreage, you are likely weighing how to finance a property that may have a well, septic system, or acequia access. The good news: there are loan programs built for this. In this guide, you will learn which loans fit rural and semi-rural properties in Bernalillo County’s South Valley, what lenders look for on acreage, how the timeline works, and how to move forward with confidence. Let’s dive in.

Why USDA and rural loans fit South Valley

South Valley mixes small agricultural plots, traditional acequias, and residential parcels. That blend can be ideal if you want privacy, garden beds, or room for animals. It also means lenders ask different questions than they would for a standard suburban lot. USDA programs exist to expand rural homeownership and often allow 100% financing when the property and borrower qualify. Other options like VA, FHA, and state assistance can also work well for acreage in this area.

Loan options at a glance

USDA Guaranteed Loan Program

This is a lender-originated mortgage with a USDA guarantee to the lender. It is built for low to moderate income buyers and can offer no-down-payment financing when you and the property qualify. Always confirm parcel-level eligibility using the USDA property-eligibility tool. You can also review the program’s overview on USDA Rural Development’s Guaranteed Loan page.

USDA Direct Home Loans

USDA lends directly to very low and low income buyers under this program. Processing can take longer because USDA underwrites the loan itself, but the terms can be helpful for qualified households. Read more on the USDA Direct Home Loans page.

VA home loans

If you are eligible through military service, VA loans are a strong fit for rural homes and can offer 0% down with competitive rates, subject to property standards. Learn more on the VA home loan program page.

FHA and FHA 203(k)

FHA-insured mortgages allow lower down payments and more flexible credit criteria. For acreage, lenders will verify that a private well and septic meet HUD standards. If you plan repairs or upgrades, the 203(k) option can finance improvements under one loan. Explore the HUD FHA 203(k) program.

FSA loans for working acreage

If your goal is to farm or operate an agricultural enterprise on the land, consider the USDA Farm Service Agency. FSA offers farm ownership and operating loans for beginning and established farmers. Review the FSA farm ownership loans to see if your plans align.

Conventional and state assistance

Certain conventional programs for low to moderate income buyers can work with acreage, depending on lender guidelines. You can often pair a first mortgage with down payment help through the New Mexico Mortgage Finance Authority. Visit New Mexico MFA’s homebuyer programs for current options.

What lenders verify on South Valley acreage

Acreage is not one-size-fits-all. Expect your lender and appraiser to examine the items below. Confirm them early to keep your timeline on track.

Property eligibility and income

For USDA, parcel-level eligibility is required. Do not assume an address qualifies just because it is in a rural-looking area near Albuquerque. Use the USDA property-eligibility tool for each specific property. Household income limits for USDA programs are set by county and household size and change annually, so verify with your lender or USDA Rural Development.

Water, wells, and acequias

If the property uses a private well, lenders typically require well logs, yield tests, and proof of permitting. In South Valley, some parcels include acequia access or water-sharing agreements. Documentation of water rights or ditch-share arrangements is important. You can search well and water records through the New Mexico Office of the State Engineer.

Septic systems and waste

On-site septic systems must be functional and permitted. Expect a septic inspection and, if needed, a percolation test. Bernalillo County Environmental Health manages permitting and standards for liquid waste systems; you can learn more from Bernalillo County Environmental Health.

Access, utilities, and use

Lenders want to see legal, year-round access. If access is via a private road or easement, you may need a road maintenance agreement. The presence of electricity, propane, and internet or phone service can affect underwriting and the appraisal. Zoning and use rules also matter, especially if you plan to farm, run a home-based business, or subdivide. Start with Bernalillo County Planning to understand permitted uses.

Title, survey, and floodplain

Large or irregular parcels can come with easements, boundary questions, or older surveys. Lenders often want a recent survey, especially if fences or ditches suggest possible encroachments. Title should be reviewed early to flag any restrictions, road agreements, or conservation easements.

Step-by-step timeline to close

Before you shop (about 1 to 2 weeks)

• Get preapproved with a lender experienced in USDA and acreage loans.
• Confirm USDA property eligibility if you plan to use a USDA loan.
• Discuss the likely inspections for wells, septic, and access with your agent and lender.
• Consider an early title search if the parcel has complex acreage or easements.

Under contract (about 30 to 60 days, varies)

• USDA Guaranteed loans often close in 30 to 45 days when documentation is clean. The lender will request a USDA case number and confirm the property is within eligible boundaries.
• USDA Direct loans take longer because USDA underwrites the file. Expect additional weeks or months depending on workload.
• FHA and VA are commonly 30 to 60 days, depending on repairs and inspections.
• FSA or specialized financing can take longer due to program-specific requirements.

Delays often come from waiting on well permits or records, septic inspections, required repairs, surveys, or clearing title and easement issues. Build extra time into your contingencies if the property has older systems or complex water rights.

Appraisal and inspections

Your lender orders the appraisal, which must support the value and consider acreage features like irrigation improvements or outbuildings. Typical inspections include well flow and potability, septic system functionality, roof and structural items, pest, and any program-specific standards. USDA may also require environmental review for certain properties.

Closing and after

Once all conditions are satisfied, you receive a clear-to-close and coordinate signing with the title company. Some loans allow escrow holdbacks for repairs after closing if permitted by program rules. Your agent and lender will outline any post-closing steps.

How I help you navigate the process

Buying acreage in South Valley is exciting, but the details matter. Here is how I help you move with clarity and speed:

• Align you with lenders who actively close USDA, VA, and FHA acreage loans in Bernalillo County.
• Verify USDA property eligibility early and set realistic contingency timelines.
• Coordinate key inspections and reports: septic, well yield, survey, and any specialty items the lender requests.
• Pull available records and permits from Bernalillo County and the New Mexico Office of the State Engineer to reduce surprises.
• Work with the title company to resolve easements, access, and road maintenance agreements.
• Communicate with county departments and, when relevant, acequia associations to confirm documentation of water access.

You get a calm, organized process from offer to closing, with clear checklists and regular updates.

Quick checklists

Pre-offer checklist

• Confirm USDA eligibility for the exact address using the USDA property-eligibility tool.
• Get preapproved with a lender experienced in rural and USDA loans.
• Request copies of septic permits, well logs, maintenance records, and any acequia agreements.
• Verify legal road access and any recorded easements.
• Ask for a recent survey or confirm if a new survey will be needed.

Due diligence checklist

• Order a septic inspection and confirm county permitting status through Bernalillo County Environmental Health.
• Run a well record search and schedule a yield test; confirm permits via the New Mexico Office of the State Engineer.
• Review title for easements, covenants, and encumbrances.
• Confirm zoning and permitted uses with Bernalillo County Planning if you plan agricultural or business activity.
• Ensure the appraisal addresses acreage and improvements.

Bottom line

USDA, VA, FHA, and state programs can open the door to acreage living in South Valley when you match the right loan to the right property and verify the details early. With clear steps, the right lender, and organized due diligence on wells, septic, access, and water rights, you can move from offer to closing with confidence.

If you are ready to explore acreage in South Valley or want a second opinion on your financing path, reach out to Adrian Montgomery for local guidance and a streamlined plan.

FAQs

What is the first step to use a USDA loan in South Valley?

• Get preapproved with a lender experienced in USDA, then confirm parcel-level eligibility using the USDA property-eligibility tool for any home you are considering.

Do USDA loans always offer 0% down?

• Many USDA Guaranteed loans offer no-down-payment financing when both borrower and property qualify, but lender overlays and program rules vary. Verify your options with your lender.

Can I use a VA loan to buy a home with acreage?

• Yes, if you have VA eligibility and the property meets VA standards. Learn more on the VA home loan program page.

Will a private well or septic system block my loan?

• Not necessarily. Lenders require proof that systems are permitted and functioning. Issues can often be resolved with repairs, documentation, or escrow holdbacks depending on the loan program.

How do I confirm water rights or well permits in New Mexico?

• Search records and permits with the New Mexico Office of the State Engineer and consult your agent and title company for document review.

Are rural loans slower to close than conventional?

• They can be, mainly if you need additional inspections, surveys, or repairs, or if you use USDA Direct. Working with lenders who regularly close rural loans helps keep timelines on track.