What type of house qualifies for a USDA loan? HD

What type of house qualifies for a USDA loan? When you hear about USDA Home loan benefits such 100% financing or the ability to finance closing costs, it can be easy to focus on the financial advantages and then forget about what kind of property is actually eligible for a USDA loan. A key step is to first understand what type of house qualifies for a USDA loan and then also be aware of what properties are considered ineligible for USDA financing. First off, remember that the USDA Rural Home Loan Program does NOT have set loan limits like FHA or Conventional loans. The maximum loan amount is based on the applicant’s qualifying ability. While many may automatically assume that higher priced homes would not qualify, homes that are in subdivisions, gated communities, and even townhomes could all be considered a type of house that qualifies for a USDA loan pending they are in a USDA eligible area. Although many traditionally view single family residences as a type of house that qualifies for a USDA loan, units in a condominium project are eligible for the USDA guaranteed program if the condominium has been approved or accepted by FHA (HUD), VA, Fannie Mae or Freddie Mac. USDA eligibility for condominiums can be on a case by case basis, so contact my team for assistance on your next condo scenario. As of December 1st 2014 USDA guidelines changed and homes with in-ground pools are now completely eligible! As you may remember previous USDA guidelines made it challenging for this type of house to qualify for a USDA loan, but that is long gone thankfully! Just to review quickly, what properties are not considered eligible for a USDA loan: Existing Manufactured Homes Investment Properties or 2nd Homes (USDA Loans are only eligible for primary residences) Properties that include buildings which are designed to be used principally for income-producing purposes such as a barn, silo, or other type of commercial operation for example. While this is not an all inclusive list, it is important to remember that the type of house that qualifies for a USDA loan must be predominantly residential in use, character, and appearance. As you can see, the USDA loan program can be extremely powerful, however be careful you are working with a lender who has a proven track record of success under this unique program. As a USDA approved lender, we are here to help. Just call or email to discuss your scenario and let us show you the “Metroplex” difference! http://www.USDALoanPro.com Download our FREE USDA Blueprint for Success! http://www.usdaloanpro.com/blue-print-for-success/ GET MORE INSIGHTS More ProTips from USDA Loan Pro: Subscribe on YouTube: http://www.youtube.com/subscription_center?add_user=MetroplexMortgage Website: http://www.usdaloanpro.com Facebook: https://www.facebook.com/MetroplexMortgage Twitter: https://twitter.com/USDALoanPro