USDA Home Loans and Property Eligibility

The United States Department of Agriculture’s rural development program is one that can provide significant assistance for a vast array of people, in a vast array of areas. As long as the home is in a rural area, there is a good chance that it would be perfectly suited for a USDA guaranteed loan.

As for the basic qualifications of the property, it needs to be: single family in size (no duplexes, or apartment buildings), move in ready (ie. no major structural damage, no necessary repairs that would make it uninhabitable otherwise, etc.), stick built (no mobile homes, or modular homes),it needs to be on a foundation and if there is more than one borrower, they both need to declare the new home as their primary residence. There are some subtle nuances that can come about it rare cases, but for the most part, properties will either blatantly meet, or not meet these requirements.

Some of these minor distinctions can include the fact that these properties cannot have excessive amounts of land attached with the property (making up more than 30% of the property’s value, this is typically seen as less than ten to fifteen acres of land), it cannot have any income producing assets on the land (in law suites, barns that enable the storage of animals, etc.), and it cannot be used or zoned for the purpose of commercial use.

USDA Guaranteed Home Loans solely cover the purchase of single family homes, which are stick built, on a foundation, move in ready and will be the primary residence of any and all borrowers.

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