USDA Property Eligibility Guidelines

Applying for a USDA home loan is a great option for buyers who are interested in purchasing a property without a down payment. It was originally made to support rural housing in individual states, but it's become a much more flexible loan product than it was originally intended to be.

The USDA home mortgage program makes it easier for applicants to determine if the property that they would want to purchase is eligible or not.

The USDA home loan is mostly available in areas that have a population which is no more than 35,000. This means that many suburban areas qualify for a USDA mortgage as well as applicants in smaller cities and towns.

The United States Department of Agriculture generally reviews census findings across the country to determine whether or not some regions are still eligible for USDA. On top of that, the USDA home mortgage also has several requirements to know if the property is eligible or not. For instance, the property size will also be taken into consideration. Houses with the square footage of at least 1,800 or less would qualify.

If the property has an in-ground swimming pool or is designated as a property designed to gain profit it will likely be ineligible for a USDA loan. Additionally, the loan applicant must reside in the property as his or her primary residence to qualify.

Once the property inspection has been made, and the property is found to be eligible for a loan, then a buyer can move on to the next step to apply for a USDA loan. While the USDA doesn't loan the money directly to the borrower, they do provide at least 90 percent guarantee to those lenders who actually do provide the funds. This guarantee makes banks even more willing to assist borrowers in getting their home mortgage.