Here’s what you need to know about qualifying areas and how to apply for a USDA loan.
Qualifying Areas for USDA Loans:
- Open Country. Properties located in open country, not associated with urban areas, may qualify for USDA loans.
- Small Towns and Villages. Towns, villages, or cities with a population of less than 10,000 people are eligible for USDA loans.
- Low-Population Metropolitan Areas. Properties in areas with a population above 10,000 but below 20,000, and not within a highly-populated metropolitan area, may also qualify.
Keep in mind that the USDA conducts regular reviews every few years to identify areas that qualify for rural home loans. You can check the eligibility of a property by searching its address on the USDA’s eligibility site.
How to Apply for a USDA Loan:
- USDA Guaranteed Loan: Apply through a USDA approved lender by submitting a mortgage application.
- Other USDA Loans: Processed through the state’s Rural Development Office, so processing times may vary.
As a government agency, the USDA has limited funding available each year. Depending on funding availability, you might need to wait to apply. For detailed application instructions, visit the USDA’s Rural Development website.
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Shirin Rezania Ramos | 858.345.0685 | www.shirinramos.com | Compass, DRE 0203379
