Homebuyers prefer USDA loans because they require no down payment and provide financing flexibility. Additionally, recent changes to USDA regulations have increased the amount of land that can be purchased with a USDA home loan.
While it is true that you cannot just buy raw land with a USDA Guaranteed loan, I will explain how much USDA land is allowed when buying an existing home or building a new home in today’s video.
Additionally, get our FREE USDA Blueprint for Success, an instruction manual that will walk you through the USDA procedure and rules.
To begin with, the USDA Single Family Housing Guaranteed Loan Program is not a solution for working farms or properties that generate income; it is designed for Single Family Housing. Additionally, keep in mind that any land you buy must be used to build a new home or in connection with an existing home.
We are able to provide no down payment USDA construction loans for single family, modular, and manufactured homes under the USDA Single Close Construction to Permanent Program if you’re building a house. This includes the option to buy land concurrently with the construction or build on land that you already own.
In addition, the USDA guidelines only require that the acreage be typical for the region, as explained below.
USDA Site Size Requirements
The following is stated in the USDA’s site size guidelines: “The site size must be typical for the area.” ”.
This definition clearly increases the amount of USDA land that could be purchased, and nearby sales will help to support whether the site size is typical. As a result, until we have the opportunity to further review the scenario, do not assume that properties with increased acreage may or may not be eligible.
USDA Land and Home Scenarios or Questions
Most importantly, don’t let the details overwhelm you; that’s what my team and I are here for. If you have any scenarios or questions, please reach out so that we can help you determine how many acres you can buy with a USDA loan and provide additional guidance and upfront review.
Please get in touch with us by phone or email if you have any questions or situations:
(800)806-9836 Ext. 280[email protected].
Summary – USDA Land
In conclusion, it’s crucial to keep in mind that the size of the USDA land should be typical for the region. This is crucial for figuring out the number of acres you can purchase with a USDA loan.
We’re here to help you at every stage of the process thanks to our depth of knowledge and expertise. Let us show you the “Metroplex“ difference!.
Lastly, don’t forget to download our USDA Blueprint for Success. Have a great day, and I’ll see you for the following tip of the week!
FAQ
Can you use a USDA loan to build a Barndominium?
With a USDA loan, you can either purchase an existing barndominium or construct a brand-new one. You need a USDA construction loan if you want to construct a new one. This may be a single-close loan that combines a mortgage and a construction loan or interim financing using a conventional USDA loan with a fixed 30-year term.
What towns in NJ are USDA approved?
Are USDA loans a good idea?
For purchasers with a moderate or low income, a USDA loan is a fantastic option. Only one other loan program (the VA loan) allows you to purchase a home with no down payment and low interest rates. It may be worthwhile to investigate a USDA-guaranteed loan if your house is in a qualifying area.
Can you get cash out on a USDA loan?
Except for the reimbursement of eligible closing costs paid with the borrower’s personal funds for the refinance transaction, cash out is not permitted. The servicer is not entitled to include late fees or penalties, unpaid fees, or past-due interest in the new loan amount.