Can we apply for a USDA to build rental homes?
We own land through an escrow company on a real estate contract with a relative. We plan to build rental homes on the land for passive income. Can we apply for a USDA worth $150k to finance the build? We’re self-employed with a steady income. by george porge from Dubuque, Iowa. Nov 29th 2022
Dave Skow (daveskow)
#15 ranked lender in Washington - 455 contributions
no ...usda loans are not usable for construction loans ...best bet will be to contact the smaller to mid size lenders or credit unions close to the property for options
John Burke (jburke)
#27 ranked lender in Texas - 321 contributions
No, USDA loans are not available for non-owner occupied properties. You would need to go conventional. | John Burke | Senior Mortgage Banker | Lending in ALL 50 states |Stride Bank | jburke@stridebank.com | (877)228-9069 | NMLS# 787231 |
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
NO. The traditional USDA Rural Housing Loan that most lenders offer is an owner occupied loan only. And while it doesn't make sense, it isn't really a farm loan either. I offer USDA loans in WI, MN, IA, ND, SD. Find me at Wi-MortgageBroker.com/quick-quote | Cambria Mortgage | NMLS 274132
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