How does the United States Department of Agriculture define a Rural Area?

Because these Rural Development Loans are backed by the United States Department of Agriculture (USDA), it is easy to simply assume that they are intended solely for farmers.

The truth, however, is that the definition of a Rural Area by the USDA is much more broadly defined. These loans have nothing to do with agriculture and their purpose is to help build many of the nation’s smaller communities. Furthermore, the USDA loan cannot finance farm loans.  The purpose of the program is to expand homeownership to rural areas with the assistance of no down payment needed.

This simply means that in order to qualify, the property you would like to purchase cannot be located within in a city’s limits unless the population of the area is less than 20,000 people. It can, however, be located right outside of a city’s limits, suburban if you will and still qualify.

To learn if your property falls within a USDA approved area, the experts here at the USDA Loan Agency have made it easy. Check out our USDA Property Eligibility Page – and simply plug in the zip code.

For more information, and personalized expert advice, contact one of our USDA Loan agents today or call us at 1-866-854-4242.

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