USDA Eligibility Requirements

USDA loan eligibility map

USDA loans offer multiple benefits at the same time, including no downpayment and no low credit score requirements. The home must be eligible according to USDA funding requirements.

The USDA loan property requirement is that the property must be in a rural area or suburb. Fortunately, according to USDA property requirements, 97 percent of U.S. land is included in rural areas. However, the borrower has to go through another process before qualifying for the loan, which is to check the eligibility status of the house.

So through this guide USDA loan requirements, USDA loan eligibility map, and other important requirements that a borrower must meet.

USDA Loan Property Eligibility Map

Use an interactive map to determine if your home qualifies for a USDA loan property. You will see on the map some areas are given red mark, here red mark means these areas are not included in rural area.

Areas of property eligibility change each year based on population and more. Although you will get an idea of ​​the eligible areas through interactive map, once your loan process is completed, the eligible areas will be determined by USDA.

Before approving your loan, the USDA-approved lender will check your address through the online portal to see if it is within the authorized area.

Check with the USDA-approved lender to determine if your prospective property belongs to a rural area. If your selected or expected property does not meet USDA’s property requirements, don’t waste any more time on that property.

What is a “Rural” Area?

Under USDA terms, a rural area is one that is not part of the city or is located outside the city. The USDA has guidelines on how to identify eligible rural areas.

  • The population of the area cannot exceed 10,000.
  • Areas located within the metropolitan statistics area do not include the ruler area. And the population will never be more than 20,000. Low- to moderate-income families who do not qualify for conventional loans.
  • Areas that were once classified as “rural” but lost their status for the census will qualify. However, the population of these areas cannot exceed 35,000. The area is rural and most of the people are low- to middle-income earners and do not qualify for conventional loans.

Many small towns and suburbs meet USDA property requirements in accordance with these guidelines.

Minimum USDA Property Requirements

USDA ensures that your selected home provides protection and security in accordance with property eligibility requirements.

The first condition of USDA property requirements is that the house must be your primary residence. However, there are several types of homes that qualify for USDA loans.

  • New construction work is going on in the house.
  • The house is either built or modular
  • Condos and townhouses 
  • Foreclosure home or short sale

However, the USDA does not allow the purchase of any investor property such as a second home, rental house, firm or other investor property.

Specific USDA Home Requirements

According to the USDA world, the house must have structurally strong and safe construction. Your home will be inspected by a qualified appraiser to determine if it meets USDA home requirements.

The USDA home requirements are:

  • Property access: Your property should be in a place where there are paved roads to access or an all-weather surface.
  • Structurally good: The house must be structurally good which will provide safety.
  • Adequate roof: The roof of a house can provide minimal economic life, so the roof must be structurally good which will prevent moisture from entering.
  • Functional heating and cooling: Evaluate whether the home has heating and cooling systems. Although central air is not required, it must be effective if it is to be.
  • Operational electric system: The electrical condition of the house must be up to date. If there is any damaged wiring, it will be considered as ineligible.
  • Suitable plumbing and water flow: There will be plumbing to remove the waste, and there will be enough water pressure.

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