Legal analysis: Rural houses with real estate license and land use certificate can be mortgaged. Self-built houses in rural areas can generally be mortgaged with complete procedures. The most important procedure here is the property right certificate of the house. At present, there are some self-built houses in rural areas in China, with only land use certificates and no housing property certificates. It is impossible to apply for a loan in this situation. Whether rural self-built houses can be mortgaged depends on the actual situation. Such as the service life of the house, the geographical location of the new house, the realized value, etc. If the house has a long life or a poor location and the realized value is low, even if the procedures are complete, it cannot be used as a mortgage to obtain a loan.

Legal basis: Civil Code of People's Republic of China (PRC).

Article 410 Where the debtor fails to perform the due debt or realize the mortgage right according to the agreement of the parties, the mortgagee may agree with the mortgagor to discount the mortgaged property or give priority to compensation with the price of auction or sale of the mortgaged property. If the agreement harms the interests of other creditors, other creditors may request the people's court to cancel the agreement. If the mortgagee and the mortgagor cannot reach an agreement on the way to realize the mortgage, the mortgagee may request the people's court to auction or sell the mortgaged property. Where the mortgaged property is discounted or sold, it shall refer to the market price.

Article 413 After the mortgaged property is discounted, auctioned or sold, the part of the price exceeding the amount of creditor's rights shall be owned by the mortgagor, and the insufficient part shall be paid off by the debtor.