When Can I Sell My Usda Loan Home

NOTE: Utilize the “Select your location” menu above to choose your state. Any state-specific forms and resources will then be displayed above this note by doing this. To determine whether your income is within the direct loan limits, please visit the eligibility site. Additionally, the house must be situated in a rural area that qualifies for the program.

Answer: No, you can move and sell your home anytime with USDA 502 Guaranteed Loan. The USDA mortgage does NOT have any prepayment or early payoff penalty. You can sell/pay off your loan whenever you like without restriction or fees. This is also the case with other Government-backed loans like FHA and VA.

Applicant Resources:

The Direct Loan Application Packagers page contains resources and information specific to packaging single-family housing direct loans, and packagers are encouraged to frequently visit it.

There are no other additional requirements at the national level. Additional state-specific requirements will be listed above if there are any.


How can I get out of my USDA loan?

Except for refinancing to a different product or paying off the mortgage, there is no way to get rid of or avoid the USDA annual fee. Learn more about USDA household income limits or property eligibility.

Does USDA have a property flipping rule?

An appraisal report’s initial validity period is 150 days from its effective date. Lenders may extend that period to 240 days (an additional 90 days) by ordering an appraisal update report only once. Property flipping is not prohibited.

Can you get cash back on a USDA loan?

Cash from/to Borrower: The borrower is only permitted to receive cash back in an amount equal to the amount of their own investment in the transaction. USDA refinance deals don’t offer “cash out” options for paying off debt or making repairs, etc.

What are the disadvantages of a USDA loan?

Cons to the USDA Rural Development Loan
  • Geographic restrictions.
  • Mortgage insurance included (may be financed into loan)
  • Income limits.
  • Single family, owner occupied only – no duplex homes.