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How to Use a USDA Loan Eligibility Map

USDA Loan Eligibility Texas - The Tuttle Group

USDA Loans eligibility texasLoan programs at the U.S. Department of Agriculture seek to increase homeownership and build critical infrastructure in rural communities. One of the first steps in determining your USDA loan eligibility is checking eligibility maps showing whether your geographic area qualifies.

Where do you find the USDA loan eligibility map, how do you use it, and what information does it provide? The advisers at the Tuttle Group in Dallas can help determine if you qualify and, if so, work to guide you through applying for and receiving your loan. Here’s what you need to know about using a USDA loan eligibility map 

USDA Loan Program Basics

Prospective homeowners apply for loans to obtain “safe and sanitary housing” in specified rural areas through the Section 502 Direct Loan Program. Under Section 502, the USDA loan provides a subsidy for lowering mortgage payments for a short time. The size of your subsidy depends on your total adjusted family income, compared to the low-income limit for the geographic area where the applicants want to live. Successful applicants must show they can repay the loan over time. Approved borrowers generally receive an interest rate of between 1% and 2.5% and a term of 33 to 38 years.

Property Eligibility

Not every property qualifies for funding under Section 502. Generally, a USDA loan can only go towards buying a home of less than 2,000 square feet located in a rural area. Rural areas are generally found in regions outside of cities with populations under 35,000 residents. The home can be used only as a primary residence.

The USDA loan eligibility map will help you determine if your target home is in an eligible rural area. To get started, click on the loan program of interest and then the property eligibility program link. Then you will locate and select the state and county of your desired property. 

Finally, enter the address of the property you are considering. The map will show you the property’s location with a digital thumbtack. Ineligible areas will be shaded in red and eligible areas in a contrasting color. It may seem that your property is right on the edge of eligible and ineligible areas. 

Note that the USDA stresses that the map provides a geographic approximation. The determination you see from the map is a good indicator of whether your property might be eligible for a USDA home loan, but does not guarantee that it will be. You will have to go through the application process to determine whether your property meets the requirements for USDA home loan eligibility.

Navigating the USDA Process

The advisers at The Tuttle Group will guide you through the process of obtaining USDA loans in Texas, starting with checking the USDA eligibility map. Our team will help review your finances, complete the paperwork, and get established with your lender. In addition to direct loans for buying and rehabilitating single-family homes, the USDA offers business and industry loan guarantees, community facility loans and grants, and loan guarantees for facilities for waste and water disposal. Please schedule a consultation to discuss your options by calling or contacting us online.

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