What do USDA loan funds typically cover?

USDA loan funds are specifically designed to assist individuals in purchasing primary residences located in designated rural areas. This program aims to promote homeownership in less densely populated regions, therefore stimulating community development and agricultural expansion. The key focus of these loans is on primary residences, which means that the property being financed must be where the borrower intends to live as their main home, allowing for individuals and families to achieve stable and affordable housing outside urban settings.

Options discussing investment properties or commercial real estate are not applicable since USDA loans are not intended for properties that serve a financial investment purpose or business operations. The same applies to vacant lots, which do not qualify for USDA funding unless they are part of a specific plan to build a primary residence. Thus, the coverage of USDA loan funds being limited to primary residences in rural areas highlights the program's goal of ensuring accessible housing solutions for eligible applicants in those regions.