Don't let the farm stereotype fool you! USDA home loans offer opportunities for affordable homeownership that go way beyond buying a farm. Here are a few alternative ways you can use a USDA home loan:
Multi-family housing: USDA home loans can be used to finance the purchase or construction of multi-family housing properties in eligible rural areas. This includes properties with two to four units, such as duplexes, triplexes, or fourplexes. The loans can help individuals or families invest in rental properties and generate income from multiple units.
Residential business: USDA home loans may be applicable for properties that have a residential component as well as a business component, such as a bed and breakfast, small inn, or vacation rental. If the property is located in a qualifying rural area and meets other eligibility requirements, you may be able to secure a USDA loan to purchase or improve the property.
Build a new home: USDA home loans can also be used to finance the construction of a new home in a qualifying rural area. This allows you to design and build a house that meets your specific needs while taking advantage of the loan program's benefits.
Renovate or repair an existing home: USDA home loans can be utilized to finance the renovation, repair, or improvement of an eligible property in a rural area. This can include projects such as adding energy-efficient features, updating outdated systems, or making necessary repairs to ensure the home meets safety standards.
Refinance an existing loan: If you already have a USDA home loan, you may be able to refinance it through the USDA Streamline Refinance Program. This program allows borrowers to lower their interest rates or switch from an adjustable-rate mortgage to a fixed-rate mortgage, potentially reducing monthly payments and saving money over time.
Manufactured or modular homes: In certain circumstances, USDA home loans can be used to purchase or refinance a manufactured or modular home. However, there are specific criteria that the property must meet, such as being permanently attached to a foundation and meeting other requirements outlined by the USDA.
It's important to note that USDA home loans have specific eligibility requirements, including income limits and property location restrictions. Contact us for more information and for guidance tailored to your goals.
