Can I Use a USDA Loan to Buy a House?

Did you know that the United States Department of Agriculture, USDA, has a home loan program? The USDA Loan is an option that is backed by the USDA and offers buyers the chance to purchase property in certain areas without the requirement for a large down payment.

Even though the program is run by the USDA, you do not need to be in the agriculture business or be purchasing a farm to use this type of loan. In fact, you can use it to purchase a residential property. You are required to occupy that property as your primary residence in order to use the USDA loan.

About USDA Location Requirements

There are some location requirements, although they are not all in extremely rural areas. Many suburban areas qualify for USDA loans. You can search by zip code and even specific property address to see if the home you want to buy is eligible.

About Income Requirements

In order to use the USDA loan, you’ll need to meet certain income limits. It is designed for low-to-medium-income home buyers. This allows them to purchase a home without saving up for years and years in order to have a down payment. These income limits vary by state, county, and the number of people living in the home. You may also be able to deduct certain expenses, such as child care, from your income to see if you qualify. The USDA does include income from self-employed work, bonuses, commissions, and rentals when determining your eligibility.

If you plan to make repairs or renovations to the property, you might be able to get some of those costs included in your loan amount. This does vary and will require additional paperwork during your loan approval as well as proof of the work being completed after you buy the home.

Greg Sandler

Author Bio: Greg Sandler
Greg Sandler is a distinguished leader and strategist in the mortgage and real estate investment industry. With over two decades of experience, Greg has honed his expertise in guiding his clients to build wealth through real estate.

Greg Sandler has direct and first-hand experience as co-founder and CEO of USA Investment Group Management Inc., focusing on growing real estate holdings and diversified asset portfolios. Under Greg's guidance, the company has executed hundreds of traditional real estate acquisitions and currently manages a substantial portfolio of rental units.

Greg also has a track record of driving multi-million-dollar revenues and leading high-performing teams to success in mortgage loan originations, achieving the prestigious "Top 1% Originator" status in consecutive years. Currently steering the helm as the President at USALending.AI in Keller, TX, Greg has revitalized this division of a mortgage bank, significantly expanding the company's scale.

Prior to this, Greg's role as Senior Vice President at Fairway Independent Mortgage Corp in Rocklin, CA, was marked by his pivotal contribution in establishing the company's presence in northern California and northern Nevada. Under Greg's leadership, his team of nearly 110 dedicated mortgage professionals originated and funded approximately $800 million in residential mortgages annually.

Greg's professional journey is marked by his exceptional skills in negotiation, sales leadership, financial analysis, and P&L management. His ability to strategize, coupled with his in-depth knowledge of the mortgage and real estate sectors, makes him a visionary leader and a respected figure in the industry.

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