USDA is known to many for beef. However, USDA is less famous for home loans. Regardless, both have something in common. Cows often reside in Rural areas. USDA home loans are specifically for financing homes in rural areas.
Owning Multiple Homes & USDA Eligibility
Typically, USDA rules keep buyers from owning any other Real Estate and using a USDA home loan to finance a new home. In other words, USDA prefers it’s borrowers own just one home at a time.
Fortunately, this limiting rule is flexible. Depending on circumstances USDA home-buyers can own additional Real Estate while using a USDA home loan.
USDA makes exceptions when and where warranted. In fact, they allow borrowers who own a home already to use USDA financing when one of the following is true:
- Home is NOT within reasonable commuting distance from new home
- Home IS within commuting distance however home is not structurally sound or functionally adequate to live in
You can visit the official USDA website to find out if you or if a particular property is eligible for the program.
By Jeremy House