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USDA property rules for commercial use

Confused about the parameters for what constitutes "a business" on the land. I work from home and it does (only 3 - 4 times per year) somtimes require clients meeting me in my garage, which is also my work space. I thought USDA financed property could just not be used for farming or running a restaraunt etc. This will be my primary residence, as well as for my kids. Can I get USDA preapproved or is my working from home getting in the way? by pascual4876275 from Malone, Texas. Nov 3rd 2014 Reply


Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

What you describe should be fine for USDA. Just show that you are self-employed. I would get a P O Box as the business address; that will save you a lot of explaining. Your challenge may be to prove sufficient reported income on your tax returns. Contact me, if you need help. I love to see self-employed borrowers approved.

Nov 3rd 2014
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,927 contributions

Based on USDA guidelines, you would be fine.. The main property purpose must be your primary residence.. if you operate a business from home, then in most cases, that's ok.. here's the actual wording from USDA... "Properties that include income-producing land or buildings designed to accommodate a business or income-producing enterprise will not be financed. Home based operations that do not require specific features such as child care, product sales, or craft production are not restricted." 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

Nov 3rd 2014
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