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See if you qualify for a $0 DOWN USDA Home Loan Get Started Here
USDA loans are only available in areas the USDA considers rural.
The USDA loan property eligibility map below can help potential homebuyers determine if the home they would like to purchase is in a rural rea.
While the USDA property eligibility map shows a general idea of qualified locations, it’s best to consult a USDA lender to ensure the location is in fact eligible. This is due to USDA property eligibility changes that occur as laws and populations change.
Datapoints in the USDA property eligibility map below are sourced from the U.S. Department of Agriculture. Areas in red are not currently eligible for USDA-backed home loans.
For a home to meet the USDA’s rural definition, it must be in an area that’s not part of or associated with an urban area.
Guidelines on definition of a qualified “rural area” include:
These guidelines are generous in the sense that many small towns and suburbs of metropolitan areas fall within the requirements.
On the same level of importance as the USDA Loan's credit and borrower requirements are the property requirements. The USDA wants to ensure that the primary residence you choose meets certain minimal property requirements to protect the borrower's interest and well-being.
The USDA requires the home to be structurally sound, functionally adequate and in good repair. To verify the home is in good repair, a qualified appraiser will inspect and certify that the home meets current minimum property requirements set forth in HUD’s Single Family Housing Policy Handbook.
A few of these standards include:
Additionally, potentially borrowers should know that USDA loans can’t be used to purchase income-producing property. However, a property with acreage, barns, silos and so forth that are no longer in commercial use may still be workable.
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