If you plan to buy a home in the countryside for under €75 000 it is good to know that banks often do not offer standard mortgages for this price range. Many banks set a lower limit for loans and prefer homes that are easy to resell. A cheap house in a rural area is often seen as risky. Even if the house is in good shape you might still hear no from lenders.
That does not mean you cannot buy. It means you need to look at other ways to finance your home. In this guide we explain what is possible what to expect and how other buyers make it work.
Why Banks Often Say No
Banks prefer lending larger amounts. A small mortgage means the bank earns less while the paperwork costs stay the same. Also a rural home under €75 000 might be far from cities or in an area with little demand. That makes it harder for the bank to recover the money if you stop paying. This is why many lenders avoid small or remote mortgages.
If you are not a resident of the country it becomes even harder. Most banks want to see local income stable work and strong credit history. If you live abroad and want to buy a rural house you may need to offer a high deposit often 30 to 40 percent or more.
Other Ways to Finance Your Rural Home
Because banks often say no for homes under €75 000 many buyers look at other ways to make it happen. One option is seller finance. This means you pay the owner in steps. You agree on a price and pay part of it each month until the house is yours. This is only possible if the seller agrees and it should always be written down clearly in a contract. It is not common but it happens and some sellers are open to it if they trust the buyer.
Another option that I have seen in Germany is rent to own. You rent the house and a part of your monthly rent counts toward the final price. After a few years you can buy the house for the remaining amount. This model works best when the seller and buyer trust each other and the terms are fair. You need to be careful with the legal details but it is worth asking about.
There are also crowdfunding platforms that focus on real estate. These are more common for investments but in some cases you can join a project to co-buy or co-develop a property. It is not the same as owning your home right away but it can help you build experience or income for a future purchase.
Use Savings to Create More Freedom
Many buyers of rural homes use savings instead of loans. It gives you more freedom and less stress. If you set a goal and save each month you can reach it faster than expected. You might not need €75 000. In some places €20 000 to €40 000 is enough to buy a small house or old cottage that only needs basic repairs.
If you are good with your hands and not afraid to fix things yourself you can stretch your budget even more. Painting cleaning simple repairs and even building furniture can all be done without a big contractor. Some buyers spend only €10 000 to €15 000 on renovation and create a comfortable home. It is not easy but it is possible and the reward is big.
Buying low and improving with your own work can give you a return far above what you put in. It also teaches you useful skills and gives a strong connection to your new home.
Realistic Planning Is Key
If you know you cannot get a loan you must plan around it. Make a clear savings goal. Decide what you can do yourself. Find out what kind of homes are legal to renovate. Some old buildings look charming but are not registered or legal to live in. Others need permits before you can even touch them.
Start by exploring homes under €50 000 in regions where rules are clear. Spain Portugal and parts of Italy still have many cheap homes in legal zones. Focus on homes with clean papers and clear ownership. If needed ask a local advisor to check the basics. It costs money but it prevents big mistakes.
Should You Wait or Start Now
Some buyers wait until they have the full budget. Others go for a small house now and improve it slowly. There is no perfect way. It depends on your risk and your skills. What matters is that you stay realistic. If the house is very cheap there is often a reason. But if you can fix it up and live simply the deal can still be good.
Do not compare your plan with others. Some people buy with cash. Some buy with family. Others go step by step. Focus on what works for you and take your time.
Join the Conversation
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