USDA Occupancy Requirements

USDA Occupancy Requirements

Basic Requirements

USDA loans are geared towards home buyers in rural areas looking for a single-family housing. USDA loans, like traditional or FHA loans, have a fixed monthly payment that is set for 30 years. These loans require no balloon payments after five or 10 years and a guaranteed, federally insured interest rate for the life of the loan. 

Underwriting guidelines and credit approvals for USDA loans are streamlined and are laxer than traditional loans, making it easier than ever to qualify for a home in your price range.

USDA Occupancy Requirements

To get approval for a USDA home loan, you must meet these occupancy requirements:

  • Only single family primary residences
  • No investment properties
  • No second homes or rental properties
  • All signers, including co-signers, must reside on the property

USDA loans are available for existing single-family homes, condos, installed modular homes, townhouses, or new, installed manufactured homes. For pre-existing properties, USDA has financing available if the property was previously financed through the USDA rural home loan program.

Homes for the USDA loan program must pass a basic assessment and prove to be safe and sanitary with plumbing, electrical, and heating systems fully functional. Homes with in-ground swimming pools do not qualify.