USDA home loans are very flexible and offer many advantages compared to other home loan mortgage programs. As long as you can meet the income, location and debt-to-ratio requirements you can essentially purchase a new home with no down payment. In order for a home or property to be eligible for a USDA loan, it must be located in a rural area.
There are ways to find out if your home qualifies for a USDA home loan, the first step would be to visit the USDA website. It will provide the latest maps that can clearly indicate eligible and ineligible areas. The USDA website is the more reliable source of information regarding USDA property eligibility. The final determination will ultimately be made by the local Rural Development Office.
USDA Eligibility Steps
First step is to visit the USDA website, once you’re there you’ll see on the left hand side “Property Eligibility” under that select the appropriate property type. Next you will see options for Single Family Homes, Multi-Family Homes, and Business Programs. If you are planning on buying a single family home, select “Single Family Housing”.
After choosing your property type you will be presented with a general disclaimer regarding the accuracy of the data available on their website. Accept and proceed to the next step. Once you have accepted their disclaimer you should be taken to an interactive map of the U.S. On the top of the map you can enter an address in the search box. If you know the address of the home you are considering to purchase, enter it there and the system will tell you whether or not that address is eligible.
The map clearly shows the eligible and ineligible areas. If you don’t have an exact address, but know the zip code or city and state, you can enter that information into the search field. This tool is extremely handy for borrowers interested in determining their eligibility prior to the start of their home search. Saves time and can help rule out certain home loan programs. For example, you’re not going to research a USDA home loan if you have found out the home you’re considering is ineligible.