Single-family homes are eligible for USDA financing, and they can even be non-farm homes in typical residential neighborhoods. In fact, it can be located in a suburb or a town as long as they are within a designated rural area. More > > > > > > > >
Townhomes and Condominiums
Towhhomes are eligible but condominiums are eligible for financing only if the condominium project is approved by HUD, VA, FNMA, or FHLMC or if the lender warrants that the project meets the criteria of one of those entities.
Duplexes are an eligible property type as long as the borrower purchases only one half of the duplex. Owning both sides--living in one and renting the other--would overstep the boundaries of the program intended for modest and adequate housing for low- and moderate-income families.
Manufactured homes are eligible the units are new, less than 12 months old, never occupied, and include the site. The date of the purchase agreement must be within one year of the manufactured date displayed on the plate attached to the unit Units must be purchased and built by an approved dealer-contractor.
Modular Homes (UBC and IRC)
Modular homes are eligible and are treated in the same way as site-build homes since they are built to state and local building codes (as distinguished from manufactured homes built to the HUD code).
Building on land is an option that is often accomplished with an interim construction loan followed by USDA permanent take-out loan. The USDA loan is particularly useful because the loan is always on the appraised value, rather than the acquisition cost as is often the case with other programs that impose seasoning requirements on the land.
Homes may be financed on a leasehold when long-term leasing of home sites is a well-established practice in the area, such leaseholds are freely marketable in the area, the borrower is unable to obtain fee title to the property, and the lease has an unexpired term 40 years from the date of loan approval