Can you do non arm's lenghth transactions through USDA?

The short answer is NO.. it's not allowed, however there might be an exemption when purchasing from a relative, but it's possible they might not do 100% on a "Non-Arm's length" transaction like FHA which restricts it to 85% LTV.. It's best you call someone local who specializes in USDA loans to find out specifically if it's allowed or not in your scenario. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com