Can I get a mortgage on acreage or a horse property?
Often, yes, as long as the property is mainly a home. Milton's zoning includes an AG-1 (Agricultural) district. In some cases the city requires a use permit for things like barns or riding areas. That country feel is a big part of Milton's appeal.
Fannie Mae's Selling Guide lists farm properties, like farms or ranches, as ineligible. It requires the property to be residential, based on its features and the homes around it. A house on several acres with a barn for the family's horses can count as residential. A working commercial farm generally doesn't fit a conventional loan. The appraiser and underwriter (the person who approves the loan) decide this together. So I look at the listing, survey and photos before you're under contract.
How do appraisers value unusual Milton properties?
Appraisers compare your home to similar homes that sold recently, called comparable sales or "comps." Large or one-of-a-kind properties don't always have close matches nearby. Fannie Mae's rural appraisal guidance says appraisers may need to search farther away or further back in time. It also says farm-type features need extra study of the property's highest and best use (its most likely, most valuable legal use).
In real life, barns, fencing and arenas may add less to the appraised value than they cost to build. If your offer depends on those features counting at full value, let's talk strategy first. Options to weigh with your agent include a larger down payment, a different loan type or an appraisal contingency. That's a contract clause that protects you if the value comes in low.
What if the home has a well or septic system?
That's fine, but it adds steps. Many acreage homes use a private well or septic tank instead of city water and sewer. Government-backed loans like FHA, VA and USDA have their own standards for wells and septic systems. Some lenders require a water test. Even when it isn't required, I recommend a septic inspection and a water test for your own peace of mind.
Does Milton send its own tax bill?
Yes. The City of Milton bills and collects its own property taxes. The city says its bills go out in October and are due in December, separate from Fulton County's bill. The basic and floating homestead exemptions are filed through Fulton County. Milton's senior, full-value and disability exemptions are filed with the city. Your escrow account should cover both the county and city bills.
What this means for your mortgage
- Send me the listing early. Acreage, barns and any farm use affect which loan fits.
- Know your loan size. Depending on price, a Milton home may need a jumbo loan or may fit conventional guidelines.
- Building on land? See construction-to-permanent loans and the construction budget planner.
- Strong savings but uneven income? Asset depletion or bank statement loans may be worth comparing.
Statewide closing costs and taxes are on my North Georgia and Metro Atlanta guide.
Milton mortgage questions
Can I get a conventional loan on a Milton horse property?
Possibly. Fannie Mae requires the property to be residential and lists farms and ranches as ineligible. A home with a barn and riding area for personal use may qualify. A commercial farm generally won't. It's decided one property at a time, subject to appraisal and underwriting.
Does Milton bill city property taxes separately?
Yes. The City of Milton bills and collects city property taxes. The city says bills go out in October and are due in December. The Fulton County Tax Commissioner bills county taxes separately.
Will a barn or arena raise the appraised value?
It may add some value. But appraisers rely on comparable sales, and those features don't always add value dollar for dollar. Plan your offer and loan with that in mind.
Do I need a well or septic inspection?
Some loan programs and lenders require a well water test, and FHA, VA and USDA have specific standards. Even when it's not required, I recommend checking both.
Programs that come up here
Nearby communities
- AlpharettaMy home office. Alpharetta sends its own city tax bill and has its own homestead exemptions, and both affect your monthly payment.
- RoswellRoswell's Historic District has its own design review, and the city takes its own homestead applications through June 1.
- CummingForsyth County takes homestead filings past April 1, and Lake Lanier homes come with Army Corps shoreline rules worth knowing first.
- Ball GroundSmall-town, country-edge home loans: USDA checked by address, wells and septic, and appraisals with fewer nearby sales.
Sources
General local information, not legal or tax advice. I don't maintain an office in Milton unless noted; my office is in Alpharetta, Georgia. Subject to credit approval and program guidelines. Not a commitment to lend.