Eligible Property Types General Requirements The property must be located in a rural area or rural community. For more information about designated rural areas, visit the USDA Rural Development web site. The property must be a single family home and must be located on a modest site. Modest sites are defined by their size, value, and the presence of any outbuildings. Size: The site must not be large enough to be subdivided under local subdivision regulations. Value: The value of the site must not exceed 30 percent of the as-improved market value of the property. The 30 percent limitation may be exceeded if the site cannot be subdivided into two or more sites and the value of the site is typical for the area. Farm Buildings: The property must not include farm service buildings; however, smaller outbuildings such as storage sheds are allowed. Manufactured Homes Manufactured (HUD) homes are eligible for financing under the Rural Development Loan. The home must be new (never sold, set, or occupied). The dealer of the manufactured home must be approved by USDA. The dealer must provide an engineered permanent foundation. The dealer must serve as the general contractor for all construction and installations. The dealer/contractor must issue a one-year builder's warranty provided on form RD 1924-19 or HUD-92544 or an insured 10-year warranty. Download the application for becoming a USDA approved dealer. Download the USDA Builder's Warranty. > Return to top Modular Homes Modular homes are eligible for financing under the Rural Development Loan and are handled in the same manner as stick-built homes built to all local, state, or regional building codes at their destinations. Town Homes and Condominiums Town homes and condominiums are eligible for financing under the Rural Development Loan, but these conditions apply to condominiums: The condominium must have an association agreement. The condominium must be approved by HUD, VA, Fannie Mae, or Freddie Mac. Duplexes Duplexes are eligible for financing under the Rural Development Loan as long as the borrower purchases only one half of the dwelling. Raw Land Raw land is not eligible under the Rural Development Loan. However, purchasing land and building a home is an option with an interim construction loan and a Rural Housing take-out loan. Borrowers can get very favorable terms when a USDA commitment letter is presented to a construction lender – often including no down payment on the construction loan. Please visit the Land – Home Opportunities web page for more information. Other Properties Other properties may be eligible under the Rural Development Loan depending on various factors. Please Contact Us for a determination. > Return to top
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