Can you finance the vacant lot next door with the same USDA loan?
In rural areas, what can be done when a seller wants to include their adjoining vacant lot as part of the same sale? Thankfully, USDA loans can be flexible when trying to include an adjoining parcel.
However, it’s important to be aware of 5 critical points when working to purchase a home and the vacant lot next door with a USDA loan.
In today’s video, I’ll explain how a USDA loan can help you buy the vacant lot next door and include it as part of a single transaction. This is specific to a USDA loan since other loan programs have their own unique requirements.
For a great overview of mortgage loan options side by side, download our FREE Loan Comparison Sheet here!
How do you purchase the adjoining vacant lot with the same USDA loan?
USDA guidelines offer improved flexibility when attempting to purchase and include the vacant lot next door within the same USDA loan.
While this is not a comprehensive list, below are 5 critical points to remember when purchasing a home and financing the adjoining vacant lot with the same USDA loan.
- Lots must be adjoining (connected)
- If the lots have not yet been combined, remember to separately list each parcel ID on the same sales contract
- The appraiser will include all parcels in the value
- Lot must meet USDA site requirements:
- be typical for the area
- be predominantly residential in use, character and appearance.
- the property must NOT include buildings principally used for income-producing purposes
- All lots will need to be included with the final survey
Summary – How to include a vacant lot next door with a USDA loan?
Remember that when trying to include the adjoining vacant lot with the same transaction, guidelines will vary between loan programs as well as between lenders, so upfront communication is critical prior to signing a sales contract.
Let our vast experience and expertise with complicated situations go to work for you.
Please reach out by calling (800)806-9836 Ext. 280 or emailing SeanS@MPLX.org
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Lastly, don’t forget to discover all of our FREE USDA Resources.
Make it a great day and I look forward to seeing you for the next tip of the week!