HomeTown Lending Is the Company to Choose to Work With Skilled Brokers and Lenders
Addison, United States - December 16, 2024 / HomeTown Lending /
Understanding the specific property requirements for USDA loans is essential for potential homeowners near Dallas who are considering this option. The USDA loan program was created to help low- to moderate-income families purchase homes in designated rural and suburban areas. However, these loans come with clear restrictions to ensure they are used for primary residences, supporting the program’s mission to provide affordable housing for those who need it most. Visit HomeTown Lending to speak with a mortgage broker in Dallas, TX, about USDA loans.
Why Primary Residence Requirement Matters
The USDA loan program is intended to help people purchase affordable homes for personal use rather than for financial gain through rental or vacation properties. For this reason, any home purchased with a USDA loan must serve as the buyer's primary residence. This requirement means that applicants cannot use USDA loans for investment properties, which are often bought to generate rental income, or for vacation homes intended for occasional use.
This focus on primary residences aligns with the USDA’s objective to make homeownership accessible to families who need it most, ensuring that homes in eligible rural and suburban areas serve as the primary living spaces for those qualifying under the program’s guidelines.
Property Eligibility: Location and Size Criteria
The location of the property is another essential requirement for USDA loans. USDA financing is only available for properties located in rural or suburban areas defined by the USDA. In most cases, eligible areas are communities with populations under 35,000. Although this often excludes city centers, many Dallas-area suburbs and rural areas may still qualify, opening opportunities for buyers looking slightly beyond the immediate city limits.
Beyond location, the USDA has expectations regarding property size and cost. Homes must be “modest” in nature, which generally means they should fit within the area's standard size and cost parameters. The USDA aims to prevent financing excessively large or luxury properties, helping to reserve funds for modest family homes that fall within realistic affordability ranges.
Prohibitions on Income-Generating Structures
USDA loans also restrict certain property types to further align with their goal of supporting personal homeownership. Homes with income-generating features, such as rental units, are not eligible for USDA loans. These guidelines help maintain the USDA’s focus on assisting families who seek stable, affordable housing rather than investment properties. For this reason, any additional structures on the property, such as rental cottages or detached units designed for income generation, would likely disqualify the home from USDA loan eligibility.
Meeting Safety and Livability Standards
A home purchased with a USDA loan must also meet basic safety and livability standards, ensuring that USDA-backed properties provide secure and comfortable living conditions. The USDA’s requirements help protect buyers from substandard housing and support purchasing homes for long-term, safe residences. The property must meet structural, electrical, and plumbing standards and comply with local building codes.
HomeTown Lending: Making Homeownership a Reality in Dallas’s Surrounding Areas
Understanding these property requirements is key to making an informed purchase decision for those considering USDA loans in Dallas, TX, and surrounding areas. By meeting USDA guidelines, buyers can find affordable, safe homes in eligible rural and suburban locations, achieving homeownership that aligns with both personal and program goals. Visit HomeTown Lending today!

Contact Information:
HomeTown Lending
15305 Dallas Pkwy Suite 100
Addison, TX 75001
United States
Contact HomeTown Lending
(972) 322-4472
https://hometownlend.com/