USDA Loans provide low- and moderate-income households to own adequate, modest, decent, safe, and sanitary dwellings as their primary residence in eligible rural areas. Recipients of the program may build, rehabilitate, improve or relocate a dwelling in an eligible rural area.
• Meet income-eligibility requirements
• Agree to personal occupy the dwelling as their primary residence
• Be a U.S. Citizen, U.S. non-citizen national or Qualified Alien
• Have the legal capacity to incur the loan obligation
• Have not been suspended or debarred from participation in federal programs
• Demonstrate the willingness to meet credit obligations in a timely manner
• Purchase a property that meets all program requirements
How May Funds be Used?
• New or existing property to be used as a permanent residence. Closing cost and reasonable/customary expenses associated with the purchase may be included in the transaction.
• A site with a new or existing dwelling.
• Repairs and rehabilitation associated with the purchase of an existing dwelling.
• Refinancing of eligible loans.
• Special design features or permanently installed equipment to accommodate a household member who has a physical disability.
• Reasonable and customary connection fees, assessments or the pro rata installment cost for utilities such as water, sewer, electricity and gas for which the buyer is liable.
• A pro rata share of real estate taxes that is due and payable on the property at the time of loan closing. Funds can be allowed for the establishment of escrow accounts for real estate taxes and/or hazard and flood insurance premiums.
• Essential household equipment such as wall-to-wall carpeting, ovens, ranges, refrigerators, washers, dryers, heating and cooling equipment as long as the equipment is conveyed with the dwelling.
• Purchasing and installing measures to promote energy efficiency (e.g. insulation, double-paned glass and solar panels.)
• Installing fixed broadband service to the household as long as the equipment is conveyed with the dwelling.
• Site preparation costs, including grading, foundation plantings, seeding or sod installation, trees, walks, fences, and driveways.