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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34 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. Hi, I have some questions. I understand the requirements of obtaining a loan. Median Income per area, good credit rating with no collections in process, and other requirements. However, Since there is No money down and all can be included in loan. I have never owned a home, and my credit I am working on, its poor to fair, around 560-600. I would like to get a loan to purchase a Home and land with lots of acres, for different development of cattle raising, crop farming, fish farming, wind and solar power and a variety of other things. Lets say for instance since there is no loan maximum, correct me if I am wrong, If I want a 3000 acre land and home for the cost of $8,000,000 and the payments are fixed on 30 years, around $48,000 monthly payment. Wouldn’t that go over the median income per area, assuming the city is alice,tx 78332 ? How would that work out? If I make the monthly income of median in my area, but would like to purchase this property, how would I go about it if I want to live there and develop? Also assuming after the loan and purchase I increase my area median income due to development on the land to be able to pay the monthly payment? Thank you for your time, I will await your response.

  3. What does, all windows must be energy efficient mean. Does that mean I have to spend another $12000 on double pane glass for a home in florida? Come on.

  4. We are currently dealing with a buyer who is buying our property with this kind of loan. If we had been made aware of the requirements for this kind of loan we would have rejected his offer. This is the typical government incompetent entity that ties up the seller with outrageous nitpicking requirements down to the fricking door knobs. Sellers beware of how this will impact you with time and money. The closing has been delayed a month because they are running behind, which again put us in a bind, no way would I ever recommend accepting a buyer with this kind of financing.

  5. 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?

  6. 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

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

    Felicia Ammons (323)671-9162

  8. 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

  9. 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.

  10. 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.

  11. 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


  12. Are air conditioned window units comply with USDA requirements? My agent says no but i didn’t see a reason why not.

  13. Does a home that had carpet removed get approved and home has original Windows from 80 s. Single pain. Will these keep it from passing?

  14. We are approved for a USDA loan. Ive been told so many different things about the USDA loan not covering homes with wood burning stoves. Is there truth to this? Ive heard yes and no.

  15. I am getting a VHFA (USDA) mortgage on a home in Vermont. There is a garage in the basement but no fire separation wall between the garage area and the rest of the basement. Will I need to have this installed prior to approval for the loan? Or can this be done after I purchase the house?

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