How to find out if the property you are looking to buy is eligible for a USDA loan?
USDA loans are extremely flexible and offer numerous advantages compared to other sources of residential financing available to new home buyers A new home can be purchased with no down payment as long as the requirements concerning the income, debt ratios of the borrowers and the property location are met. For a property to be eligible for a USDA mortgage loan, it has to be located in a USDA designated rural area.
To find out for yourself, visit the USDA website. It provides the latest maps that clearly indicate the eligible and ineligible areas. While the website is the most reliable and conveniently accessible source for information concerning USDA property eligibility, it does contain a disclaimer regarding the validity and accuracy of the data shown on their maps. The final determination is made by the local Rural Development office.
Steps to determine USDA Property Eligibility:
- Visit the USDA’s Rural Development site by clicking here.
- On the left hand side, click on the appropriate property type located under the “Property Eligibility” header. Here you will see options for Single Family Housing, Multi Family Housing, Business Programs, Satellite Grant Programs and Water & Environment. If you are a buying a single-family residential home, then click on Single Family Housing.
- Upon clicking, you will be presented with a general disclaimer concerning the validity and accuracy of the data available on the site. Just click the Accept button and proceed.
- Now you shall be taken to an interactive map of the United States. On the top portion, you will be able to enter the address in the “Find Your Address” search box.
- Enter the address of the property you are considering for purchase with a USDA loan and determine its eligibility.
The map will show results clearly indicating the eligible and ineligible areas. If you don’t have a specific address in mind, then just enter the zip code or the city, state in the address search field. This is extremely handy for those interesting in determining the eligible areas prior to initiating your home search.
The USDA website also has verbal description of the eligible areas. Only those counties that have a combination of eligible and ineligible areas have a description link. All the properties in non-linked counties in a given state qualify for USDA loans. Click on the relevant state link to access the USDA property eligibility areas.
|9.||District of Columbia|
|53.||Federated States of Micronesia|
|56.||Northern Mariana Islands|
|59.||U.S. Minor Outlying Islands|
|60.||Virgin Islands of the U.S.|