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Buying land with USDA mortgage?

Can I use a USDA loan to buy land I plan to build on? I am considering 10 acres or more so it would need to accomodate that. Otherwise I have seen properties on a great deal of land and would like to know if USDA would finance that instead? by kinney.fellowes78... from Cooksville, Maryland. Feb 20th 2015 Reply


Linda Wintersteen (Linda123)
#63 ranked lender in Arizona - 1,250 contributions

no USDA is for homes.. there might be land assciated with the house.. IF YOUR credit is good, I can offer you personal or business cash lines to buy the land, up to $200,000 linda at yourloanpartnerforlife@live.com

Feb 20th 2015
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Hi Kinny;USDA loans are for homes not land-depending on your credit, income, assets you may want to look at a Constuction to Perm loan if you plan on building in the next 9-12 months- If not, talk to your local community bank and ask for a land loan- they usually require 40-45% down.

Feb 20th 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,927 contributions

No.. USDA does not lend on land, only on "Real Property" or "improved property".. meaning it must have a home structure on it.. Also, USDA has specific rules regarding acreage.. with 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. For instance, if you want to buy a home for $100,000 the land cannot be worth more than $30,000. .. 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

Feb 20th 2015
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