The United States Department of Agriculture (USDA) provides what they call a Rural Development loan that allows the borrower to get 100% financing on a home. While this sounds like the incredible opportunity that it actually is, you need to be sure you know some of the set backs we have seen in obtaining these loans:
- The house must be located in an area eligible for financing by Rural Development.
- Rural Development does not finance existing manufactured homes, i.e. single or doublewide.
- Land for existing homes can not be large enough to be subdivided according to local zoning regulations.
- The property can not have an in-ground swimming pool, farm structures OR be an income producing property.
- The site to be financed must have access to the following:
- A municipal or individual water and sewer system. SHARED WELL AND SEPTIC SYSTEMS ARE NOT ALLOWED.
- A hard surfaced or all weather road which is developed in full compliance with public body requirements, is dedicated for public use, and is being maintained by a public body. PRIVATE ROADS, EASEMENTS, AND SHARED DRIVEWAYS ARE NOT ALLOWED unless part of a site condominium or planned unit development.
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