There’s always a catch…

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.

Learn more about a USDA Rural Development Loan.

Check out this link to enter the address you are interested in to see if it is in an eligible area.

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