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What is Considered “Rural” When It Comes to USDA Home Loans?

Hand holding house against green field, representing USDA rural propertyUSDA home loans are a terrific option for many home buyers who qualify, as they offer 100% financing and very competitive interest rates.

In order to qualify for a USDA mortgage in New York, you must meet certain specific USDA eligibility requirements. These requirements include the criteria that the property being purchased must be located in a rural area.

But what does rural technically mean when it comes to USDA loans? We break it down here.

The USDA’s Definition of “Rural” for NY USDA Home Loans

The United States Department of Agriculture (USDA) is the entity that offers USDA mortgages. These mortgages are intended to help people purchase homes in designated rural areas – and the term “rural” in this case is defined by the USDA.

But what you envision as rural and what the USDA actually defines as rural when it comes to qualifying for a USDA home loan may not be the same thing.

While many people interpret the term “rural” as referring to farmland or remote areas in the countryside removed from conveniences, rural actually takes on a new meaning when looking for a residential home loan.

For those in New York State, there are specific areas where properties are not eligible – for instance downtown Albany, Saratoga, Troy, Latham, and Glens Falls. However, many properties on the outskirts of these cities are actually eligible properties. Many areas in Altamont, Duanesburg, Stillwater, Sand Lake, Greenfield, Wilton, and parts of Mechanicville, Malta, Ballston Spa and surrounding Glens Falls are actually home to properties that are eligible for USDA home loans!

If you’re looking for a USDA eligible property in New York State – good news! There are many regions of the state where eligible properties can be found.

Finding a Rural Property Eligible for a USDA Loan

There are numerous counties throughout New York State where USDA eligible properties can be found. While some counties are fully eligible, others have eligible areas.

You can find a list of New York’s counties and more information about their eligibility status here.

Additionally, the United States Department of Agriculture’s website is a great resource for checking on a the status of a property and finding out if it classifies as rural according to the USDA.

Check out the USDA Income and Property Eligibility Site and follow these steps to find out if the property you are considering qualifies.

  1. Click on Single Family Housing and then “Accept”
  2. Type in the address (like you would in Google Maps)
  3. Results will show “IS” or “IS NOT” in an eligible area

Still not sure if the property you are interested in counts as rural? Give us a call today at 518-782-1202 or contact us online and we’d be happy to help you figure it out and explore your mortgage options with you.

Purchasing a Residence in a Rural Area of New York State

Remember – finding a rural property is just one aspect of qualifying for a USDA home loan. You must also meet additional criteria to be eligible to finance your home through a USDA mortgage.

To learn more about USDA home loans, be sure to check out the following resources:

Do I Qualify for a USDA Home Loan? – Take a closer look at the qualification requirements for USDA mortgages.

USDA Loan FAQs – Find the answers to commonly asked questions about USDA mortgages.

Understanding the USDA Home Loan Process – Learn what to expect when it comes to navigating a USDA-specific home loan process.

You can also find tons of information about USDA home loans in our Guide to USDA Home Loans, so be sure to check that out as well if you’re in the market for a home in a rural area of New York State!

Interested in financing your home with a USDA loan? We can help!

At Maple Tree Funding, we take pride in helping our clients and customers find mortgage options that work best for them. If you’re interested in a USDA home loan, we can determine if you meet the qualification requirements and help you through the process from start to finish. But, if it ends up that either your or the property you are interested in doesn’t meet the criteria for a USDA home loan, we can still help you find a home loan option that works for you!

As a broker, we have access to dozens of lending programs and can shop your options for you, to make sure that you end up with the mortgage that truly suits you best – be that a USDA home loan or another competitive home financing option.

Give us a call today at 518-782-1202 or contact us online to get the conversation started.

Posted in Guide to USDA Home Loans on Monday, October 17, 2022 by Maple Tree Funding