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
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.
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.
"income producing" commercial or farm buildings allowed. I
know, I have said this twice but people seem to miss this and continue to
RD will review the appraisal for acceptability.
own other adequate housing with in a 35 mile driving commute.
residence only. Type: new or existing single family, site
built/modular/PUD, new manufactured, (Condos have special
criteria) Existing manufactured homes do not qualify.
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.
your state for eligible areas