Before applying for a USDA home loan, it’s important to understand the key eligibility criteria.
These loans help qualified applicants purchase modest, safe, and sanitary homes in eligible rural areas. To qualify, you’ll need to meet income limits, agree to use the property as your primary residence, and have the legal capacity to take on the loan. Additional requirements ensure applicants are in good standing with federal programs and that the property meets USDA standards.
Key requirements for USDA home loans:
- The applicant must agree to occupy the dwelling as their principal residence and provide evidence if required
- Investment or temporary housing is not eligible USDA
- The dwelling must be modest, decent, safe, and sanitary USDA
- Applicants must have legal capacity to incur the loan obligation USDA
- Applicants must not be suspended or debarred from federal programs
- Income must not exceed area limits, which can be checked online