- True Grit Farms
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COOL is a major player in the prices those of us in the agricultural industry receive.
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Almost any property outside a metroplex is eligible.
The USDA's guidelines on the definition of a qualified "rural area" includes:
A population that doesn't exceed 10,000, or
A population that doesn't exceed 20,000; is not located in a metropolitan statistical area (MSA); and has a serious lack of mortgage credit for low- to moderate-income families, or
Any area that was once classified as "rural" or a "rural area" and lost its designation due to the 1990, 2000 or 2010 Census may still be eligible if the area's population does not exceed 35,000; the area is rural in character; and the area has a serious lack of mortgage credit for low- and moderate-income families.
These guidelines are generous in the sense that many small towns and suburbs of metropolitan areas fall within the requirements. The USDA offers two different loan options to help rural families achieve the dream of homeownership: the USDA Guaranteed Loan and the USDA Direct Loan.
The primary difference in the two programs is who funds the loan. With the guaranteed loan, a USDA-approved lender issues the loan. However, with the direct loan, the USDA issues the loan and provides payment assistance in the form of a subsidy.
USDA loans cannot be used for investment properties, meaning farms, rental or vacation homes, and other income-producing properties aren't eligible. However, a property with acreage, barns, silos and so forth that are no longer in commercial use may still qualify.
I don't think 10 acres of non-revenue producing land was what most of us think of when we think USDA...How many acres do you need for a USDA loan?
Acreage: One of the great things about USDA they do allow you to buy a home with more acreage than a conventional or FHA loan. Generally they like to keep it at 10 acres or less. There is no maximum acreage limit. However, the land cannot exceed more than 30% of the total appraised value.
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