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USDA Property Requirements

Qualifying for a USDA home loans means finding a property that meets the standards of the USDA program.

USDA Property Eligibility

A part of the USDA Rural Development Guaranteed Housing Loan program, USDA loans offer 100% financing for eligible home buyers. To qualify, borrowers must purchase a USDA-eligible property. These requirements stem from the program’s mission to invest in rural areas.


What is a rural area?

USDA-eligible properties must be in rural areas, but the good news is that the USDA’s definition of rural is much broader than what most people picture. The USDA defines a rural area as one with a population of fewer than 10,000 people. If the area has a serious lack of mortgage credit for low-to-moderate-income families, a population under 35,000 is acceptable.

Approximately 97% of land in the United States qualifies for a USDA home loan, including some suburban areas surprising close to the city limits. Even if you don't think your property is eligible, it's worth checking to make sure.

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Does my property qualify for a USDA loan?

Use the U.S. Department of Agriculture eligibility website to find out if a property qualifies for a USDA loan. To determine if a property is located in an eligible rural area, click on this link, then click on one of the USDA Loan program links and then select the Property Eligibility Program link.


USDA Property Requirements

Properties must meet certain requirements to qualify for USDA financing. Most importantly, the property must be your primary residence. USDA home loans cannot be used for investment properties, including farms, rental homes, and vacation homes.

Types of homes that qualify for USDA loans:

  • New Construction
  • Condos and townhomes
  • Manufactured homes
  • Short sales and foreclosed homes
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Apply for a USDA Loan

By speaking with a loan officer, you can learn if your ideal property qualifies for a USDA loan. Your loan officer will help guide you through the loan process.

Find a Loan Officer