What condition must be met for an individual to purchase using USDA financing?

For an individual to purchase a property using USDA financing, it is essential that the property must be owner-occupied. This requirement emphasizes that USDA loans are designed to support individuals and families in buying homes that they will live in as their primary residence. The aim is to promote homeownership in rural areas and foster community stability. By ensuring that properties financed through USDA loans are owner-occupied, the program helps ensure that the benefits are directed toward families seeking to establish roots in these areas, further contributing to the development and sustainability of rural communities.

Other options such as using any type of property, needing a large down payment, or being a first-time homebuyer do not capture this critical aspect of the USDA loan program. For example, no extensive down payment is required for USDA financing, which makes it accessible to more individuals, not exclusively first-time buyers or those purchasing specific types of properties. The focus remains on owner-occupancy, which is fundamental to qualifying for this type of loan.