Are there really that many homes that qualify for USDA funding?

With several articles being published on a regular basis about the USDA home loan, many people have the same question; “are there really that many areas that qualify for the loan?”

Since the term “rural” is often used to describe the USDA mortgage program many individuals wrongly assume that only the properties located 50+ miles from any type of city will qualify. However, this is terribly wrong.

Look over the table below to get an idea of the eligible areas in Wisconsin, Minnesota and Illinois.

As you can see from the table, over 75% of the counties in both Wisconsin, Minnesota and Illinois are eligible for USDA financing. But what you don’t see is even more important. The second column, “Counties with Ineligible Portions” is crucial. Some counties only have CERTAIN SECTIONS that do not qualify for USDA financing. This could mean that a nice home located 10 or 15 miles from the center of town could be in an eligible area.

For a short drive many home buyers could get a loan with no money down, a great interest rate and the closing costs could all be paid by the seller. Talk about a win-win situation.

If you are wondering about some of the houses you have inspected talk to your local mortgage broker and ask if the USDA program is right for your potential new property.

For additional information, including ineligible areas and income limits, see our USDA Rural Housing page. To see if you qualify, contact me below or apply online!