USDA Rural Development Mortgage Guidelines

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Rural Development Property Eligibility

USDA Rural Development's property eligibility requirements  state that the property to be financed must be located in a designated rural area and must be modest in nature.  But don't be discouraged, as an example over 85% of the state of Georgia is designated an eligible rural area.

The USDA website has a map to check your state, or you can just type in an address to see if it is eligible.  You would be surprised how simple it is and how large the areas are in each state.  There will be a link at the bottom of this page so you can check your state.

Property Site Requirements

The property may not contain "income producing" commercial or farm buildings.

The property must have direct access from a street, road or driveway and it must be contiguous.  The roads must be all-weather or hard surfaced.

There is no limit to the size of the lot except that the land value must not exceed 30% of the total value.  Waivers can be granted if it is typical for the area and cannot be subdivided.

Subdivisions must be approved by local or state agencies.  Homes located in a PUD are acceptable (Planned Unit Development)

Properties with community wells or septic systems require State permits and must be compliant with the Safe Drinking Water Act and the Clean Water Act.

No swimming pools are allowed at this time but should be changing in the future.  A wavier may be granted if the appraisal shows how much value the pool adds to the total value, ... then the pool value must be deducted from the max LTV.

No "income producing" commercial or farm buildings allowed.  I know, I have said this twice but people seem to miss this and continue to inquire.

Other Requirements

RD will review the appraisal for acceptability.

Cannot own other adequate housing with in a 35 mile driving commute.

Primary residence only.  Type: new or existing single family, site built/modular/PUD, new manufactured,  (Condos have special criteria)  Existing manufactured homes do not qualify.

Only Repairs needed to make property structurally sound, functionally adequate and in good repair are required.  100% of repairs can be financed based on as-improved value.

Check your state for eligible areas


 Copyright 2008 | Kale Enterprise Corp. | Cartersville, Georgia, 30120

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