Want more help buying a home with a USDA loan? Get in touch with Neighbors Bank today. Leveraging a USDA property eligibility map is only the first step if you want to use these valuable loans in your homebuying journey. You can then include the preapproval letter with your offer, which could help you stand out from other buyers. The amount you can earn to have access to USDA loans is limited and varies by location and household size, so use this tool for more specific guidance.Īfter you’ve confirmed eligibility on both points, it’s time to apply for preapproval with a USDA-approved lender. Once you’ve used the USDA loan map to determine if a property is eligible, your next step is to confirm you meet income requirements. That can make it easier to qualify for the loan in the first place. They also have lower interest rates than many other loan programs, and their guarantee fee - the USDA’s approach to mortgage insurance - is cheaper than on other mortgages as well.įinally, USDA loans also have lax credit standards compared to many mortgage loan options. For one, USDA loans require no down payment, which can make purchasing a home significantly more affordable upfront. USDA eligible homes open the door to countless benefits. Offer working plumbing and adequate water pressure to ensure waste removalĪfter you’ve applied for your loan, your USDA lender will send out an appraiser to assess the home’s value and condition and ensure the home meets all the above standards.Have a functional and operational electrical system without any frayed or exposed wiring.Be structurally sound, with a foundation that will last for at least the life of the mortgage.Offer easy access from a paved or all-weather road.Have functional heating and cooling systems. That home will also need to be your primary residence - not an investment or income-earning property. Other Property Eligibility RequirementsĬhoosing a home in a designated rural area is only the first step to qualifying for a USDA loan. Any land outside the shaded areas on the map is fair game. To see eligible areas in your region, simply search a local address on the USDA property eligibility map. Again, there also must be a serious lack of mortgage credit in the area.Īs you can see, there’s a lot that goes into determining a city’s (and a property’s) USDA eligibility. If the area has 20,001 to 35,000 residents, it must have once been considered rural but lost its status in the 1990, 2000, or 2010 Census.There also must be a serious lack of mortgage credit for low- and moderate-income families. If the area has 10,001 to 20,000 residents, it cannot be located in an MSA.It must have no more than 10,000 residents.Rural areas must fall into one of the three following categories: To set these rural areas, the USDA factors in a community’s population, its proximity to a major metropolitan statistical area (MSA), and overall access to mortgage credit in the area. What is Considered a “Rural” Area According to the USDA?Ī home must be located in a “rural” part of the country to be eligible for USDA financing. If the property shows up in a shaded area of the USDA eligibility map, it is not currently eligible. Simply type the property address into the tool, press enter, and you’ll see if the home is eligible for USDA financing. The easiest way to determine USDA property eligibility is to look up the address in the map above. An area with a population of 35,000 or less can be considered “rural” in the USDA’s eyes. *īuyers in large cities and more densely populated suburbs aren’t eligible for these loans, but many living in surrounding towns and cities may be. Those areas claim about 109 million Americans - or around a third of the country’s entire population. land is located within USDA-eligible boundaries. In fact, you might be surprised at just how much of the country is actually eligible for these loans.Īccording to the Housing Assistance Council, a whopping 97% of U.S. Though USDA loans are often referred to as rural housing loans, you don’t have to live in the country or purchase farmland to use them. USDA Loan Property Eligibility Requirements
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