Property Eligibility

In addition to USDA income limits, the USDA also maintains property requirements. This is to ensure that USDA Home Loans are used in areas that meet the United States Department of Agriculture’s definition of “rural”.

The USDA provides interested homebuyers an eligibility map to help with this process, embedded below; however, while the USDA property eligibility map shows a general idea of qualified locations, it is best to consult a USDA Loan specialist to ensure the location is in fact eligible. This is due to USDA property eligibility changes that occur as laws and populations fluctuate.

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.

Location of the USDA Loan

Properties located on the map above must then meet the USDA property eligibility guidelines. The basic guideline state that a potential home must be located in “open country” or an area that has a population less than 10,000 − or 20,000 in areas that are deemed as an area with a serious lack of mortgage credit.

These guidelines are liberal, in the sense that many suburbs of metropolitan areas fall within the requirements as well as small towns. Contact us today to see if you qualify!

Specific USDA Home Requirements

To ensure that your home is safe and your well−being is secure, the USDA requires the chosen home to be structurally sound, functionally adequate and be in good repair. If a home is in disrepair, the borrower can use funds to place the home in good repair.

To verify that your home is in good repair, state licensed inspectors will need to inspect and certify that the home meets the USDA’s standards. These standards include:

  • No termite or pest damage
  • Working plumbing, water and sewage disposal
  • Functional heating and cooling units
  • Operational, and up to date, electrical systems
  • Structural soundness
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