What are USDA Property Eligibility Requirements?
What are the USDA Property Eligibility Requirements to Qualify for a USDA Home Loan?
With all of the different loan programs available it could be overwhelming to fully understand what the USDA property eligibility requirements are. The USDA loan program will only finance primary residences that meet up with the USDA property eligibility requirements.
USDA Property Eligibility Requirements
Additionally, you have to be very careful if you already own a primary residence and are trying to upgrade to another property with a USDA Home loan before your existing home sells. In order to qualify for a USDA Guaranteed loan with this scenario, you will have to be approved by a RD (Rural Development) field office to have met their property superiority condition, which could be any one of the following:
- Moving from a manufactured home to a single family residence (Additional criteria does apply – Call for details).
- Increase in family size requiring a larger home.
- Current residence is outside of a reasonable commuting distance due to employment change, relocation, etc.
Provided the reason is acceptable, the home buyer must still be able to qualify with both housing expenses because their prior residence has not yet sold. Income would need to be high enough to support both payments, but still must qualify within USDA housing income limits.