What types of properties are eligible for USDA loans?

USDA loans are designed to promote homeownership in rural areas and provide financing options for various types of residential properties. The eligibility for these loans extends beyond just single-family homes and includes certain multi-family properties as well. Specifically, USDA loans can be utilized for multi-family homes with up to four units, allowing borrowers the flexibility to invest in properties that can generate rental income, which can be a valuable benefit for homeowners.

This eligibility extends to properties that are primarily used for residential purposes. It is essential to note that while some options like condos and townhouses may also qualify, the comprehensive inclusion of multi-family homes highlights the USDA's support for diverse housing options, especially in rural areas where multi-family units can be a significant part of the housing market. Furthermore, not all residential property types qualify, as properties need to meet specific criteria set by the USDA, emphasizing the focus on helping low to moderate-income households achieve homeownership in rural settings.