What type of homes can be financed under the USDA program?

The USDA Rural Housing Loan program is specifically designed to assist individuals in purchasing single-family homes that are intended for owner occupancy. This means that the program aims to provide financing options for primary residences, ensuring that individuals or families who intend to live in the home as their main dwelling can access favorable loan terms.

The program excludes financing for second homes, vacation properties, or investment properties because its primary purpose is to promote homeownership in rural areas for those who might not otherwise qualify for conventional financing due to income limits or lack of substantial down payments. By focusing on owner-occupied residences, the USDA program helps stabilize communities and supports families in becoming homeowners rather than investing in multiple properties.

Therefore, the correct answer emphasizes the requirement that properties financed through the USDA program must be solely for the purpose of being a primary residence, reflecting the program's mission to enhance homeownership opportunities in rural communities.