Will This Home Qualify for a USDA Loan?

You have probably heard of a USDA direct loan, but which homes qualify for one?  The eligibility is based on several factors.

  1. Location: The house must be located in a rural area or suburb.  The population cannot exceed 35,000.
  2. Living Space:  The living space of the home should be between 400 and 2,000 Sq Ft.
  3. Land Value:  The value of the land cannot be more than 30% of the home value.
  4. The Home Requirements:
    • Solid Foundation
    • Up-to-Date Electric
    • Workable Windows & Doors
    • Functional Plumbing
    • Functioning Heating & Cooling Systems
    • Leak-Free Roof
    • Easy Access to the Property

There are a few other requirements that deal with the market where the home is located.  For instance, market value (the price a seller is willing to accept and the price the buyer is willing to pay) cannot exceed the area loan limit.  The loan limit for Ashtabula, Lake and Geauga Counties is around $377,600.  The home, as with most loans, will have to undergo an appraisal.

There is also a USDA Guaranteed Loan, that you may want to ask your lender about.  They have no home value limits.

Read the Original Article Here: Does the Home You Want To Buy Qualify for a USDA Loan? Here’s How To Tell