USDA Guaranteed Property Requirements

There are a number of requirements that properties need to meet in order to qualify for a USDA Guaranteed Home Loan.

Here is a quick checklist for the house to be eligible for USDA Loans:

  • The home needs to be readily accessible from the road, while posing no safety hazards to people using driveways or walkways.
  • The foundation needs to be structurally sound, containing no cracks, or moisture intrusion, as well as adequately draining water away from the foundation.
  • The walls of the home, both interior and exterior, must not show any structural fatigue, failure, rot, or bowing. It also must be free of mildew, and peeling, chipping and loose paint.
  • All doors must be in good working condition, exhibiting no holes or functional defects. Exterior doors must also have functioning locks.
  • All framing must be structurally sufficient. Windows must function and lock properly, be unbroken, and must be energy efficient.
  • Interior floors must not be heavily damaged, worn, or soiled; they must be expected to last for at least five (5) more years.
  • Garages must functional and have no obvious deficiencies; if attached to the home it must have a 1 hour fire wall in place, and maintained.
  • Porches and decks must be structurally sound.
  • The roof of the property must be free of leaks and expected to last for at least five (5) additional years.
  • Gutters must be properly installed and have an appropriate drainpipe at the end of each.
  • Cabinets and vanities within the home must be in fully functioning condition.
  • Stairs cannot have any signs of structural issues, and are required to have a handrail if there are more than three risers, unless otherwise stated by State building code.
  • Both electric and plumbing must be in adequate working order, and functioning. If heating and air conditioning is present, its components (exhaust fans, vents, etc.) must be in good working order.
  • Sump pumps must comply with local regulations.
  • The home must be free of all wood damaging pests and organisms.

The USDA guaranteed program includes, but is not limited to these requirements.

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16 thoughts on “USDA Guaranteed Property Requirements

  1. What are the financial requirements for a person to buy a home in a rural area. Can an otherwise qualified buyer get a Rural Development loan for a “Manufactured Home” ??

    thank you for the above info RAY

    • Ray,

      The issue is that USDA will not approve a pre-existing manufactured home. They WILL approve a manufactured home but it has to have not been lived in previous, which you dont find too often.

  2. I own 5 acres in wise county texas. Can the usda finance a construction loan or a manufacturer home to be placed on the acres?

  3. I am looking for farmland homes to live and start a community business. Please help me find 1-2 houses on the rural land.
    It has to have a home even if it is delapadated it does not matter. I have people who will refurbish and bring it together. I need the financing and help.

    I look forward to your speedy reply.

    Felicia E. Ammons (323) 671-9162

  4. Please find some Investors or sponsors who will help me build and help others achieve their goals.

    Felicia Ammons (323)671-9162

  5. I will like to find a rural property with 1-2 houses on it. Help others in the community who will need work and a place to live.

    I look forward to your speedy reply.
    Felicia Ammons (323) 671-9162

  6. We are looking at a property that we are just in love with but are contemplating even bothering with an offer since the listing agent isn’t sure it would qualify under USDA. The problems that she foresees is that there is what could be considered a “tiny house” on property that is basically a storage space (less than 400 sq ft) but does have a bathroom. The other problem is that the only heat source is 2 window units. Are there any ways around or thru these problems to get usda approval? We don’t have the funds for FHA or income but this house is $15k under what we are approved for with usda. It is however priced almost to its value. Not much wiggle room.

  7. I meet all of the qualifications for the 100% financed usda loan, and found a qualifying house. But there is no garage and I need one. There’s no sense in going further with buying this house if O can’t have a garage How do I go about financing that? Thank you so much.

  8. We are builders in Thackerville, Ok on the Texas Oklahoma State line.

    We have 32 150k townhomes we are building

    Please have someone contact me for more USDA
    Loan info


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