This definition covers the vast majority of the U.S. landmass, so before you write off a USDA loan, check your area’s status. USDA eligibility map To determine if a property is eligible for a USDA loan, you can useUSDA’s website. Most areas outside of major cities qualify. Here’...
Eligible rural area:The USDA defines an eligible area as having a population of 20,000 or fewer. Check the USDA’s eligibility site or the map below. Single-family primary residence:USDA loans are only available for primary residences, not investment properties or second homes. ...
USDA loans are a government-backed mortgage program that benefits borrowers hoping to purchase a home in a rural area. Although not everyone knows about this type of mortgage, it can be a great way to secure affordable home financing if you live in an eligible area. Below we go into more...
Unlike VA loans, however, only borrowers who earn no more than 115% of the area median income are eligible for USDA loans. In addition, the loan can only be put toward a property in a specific USDA-approved rural or suburban area. (The USDA provides an eligibility map that indicates the...
The USDA eligibility map changes with each Census every 10 years. The eligibility map can also change between Censuses as the USDA considers local and state population studies. Because of these changes, it’s possible an area may appear eligible on the map even though it’s no longer eligible...
Eligible to U.S. citizens, non-citizen nationals or qualified aliens. Location The property must be in a USDA-eligible area, which includes many rural and some suburban locations. Income Income limits vary by location and household size and are generally aimed at low- to moderate-income familie...
To be eligible for a USDA loan, borrowers must meet certain criteria, including income thresholds that differ based on the property’s location. In addition, the property must adhere to USDA eligibility criteria, including being situated in a designated rural area as determined by the USDA. ...
“Direct” because funds travel directly from the USDA to the borrower. USDA Direct Loans are a good choice for families with low income. To be eligible for a Direct Loan, the applicant’s income must fall into the “low” or “very low” categories, as defined by USDA mortgage ...
There are several requirements to be eligible for a USDA loan. Borrower income: You should make no more than 115% of the area median income (AMI) where you are buying for a USDA guaranteed loan from a private lender. For a USDA direct loan, borrowers should make no more than 80% of ...
Eligible properties The easiest way to find out if a home is in a USDA-eligible area is to check theUSDA website. Homes purchased with USDA loans must be located in eligible rural areas. The USDA defines these areas as “open country or any town, village, city, or place, including the...