USDA Properties
USDA Loan Minimum Property Requirements
USDA loans can only be used when the home is the borrower's primary residence. You can’t use the USDA loan program to buy a vacation house, second home, or rental/investment property.
Beyond being your primary residence, the house also needs to meet these USDA loan property requirements:
They must be accessible: You must be able to access the property from a road, street, driveway, or another route. There should be no hazards blocking access to the home.
They must have functional heating, cooling, and electric systems: All systems must be installed, operational and support all home functions including major appliances. No exposed wiring allowed.
They need to be structurally sound: The home’s foundation must be free of major cracks or moisture issues. There must also be enough life expectancy in the foundation to last the life of your loan— if not longer.
They must have adequate roofing: The home’s roof must have at least two years of life left. There can be no apparent holes, leaks, or missing shingles allowing moisture into the dwelling.
They must have access to adequate water supply and plumbing: Plumbing, water, and waste removal systems must be functional.
They need functional doors and windows: All exterior and interior doors must be installed and be working. All windows must be in good condition and free of cracks, leaks, or visible mold.
Income-producing properties are ineligible for the USDA home loan. If your property contains a barn, livestock facility, silo, or greenhouse that is no longer in commercial use, there’s a chance it may qualify. Discuss the situation with a USDA lender first to be sure.