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Key Highlights
The Benefits
Combined Financing
Finance purchase and improvements.
Renovation Funds
Include eligible project costs.
USDA Benefits
Access eligible USDA financing.
What's Required
USDA Eligibility
Borrower requirements apply.
Eligible Property
Location requirements apply.
Renovation Plans
Project details are reviewed.
The Ins & Outs
How it Works
A USDA Renovation Loan allows eligible homebuyers to finance the purchase of a qualifying home along with eligible renovation or repair costs through a single mortgage. It can provide an opportunity to purchase a home that needs improvements while incorporating those costs into the financing.
USDA Renovation financing is designed for eligible borrowers purchasing qualifying properties in USDA-designated areas. Available renovation options, eligible improvements, property requirements, and qualification guidelines vary by program and participating lender.
Example Scenario
A homebuyer finds an eligible property in a USDA-designated area that needs updates before it fully meets their needs. Instead of purchasing the home and paying for renovations separately, a USDA Renovation Loan may allow the buyer to combine the home's purchase and eligible improvement costs into one financing solution.
What is a USDA Renovation Loan?
A USDA Renovation Loan allows eligible borrowers to combine the purchase of a qualifying home and eligible renovation costs into one mortgage.
Where can I use USDA Renovation financing?
The property must generally be located within an eligible USDA-designated area and meet applicable property and program requirements.
What renovations can be financed?
Eligible improvements vary by program and lender and may include certain repairs, upgrades, and improvements to the property.
Can I use USDA Renovation for an investment property?
USDA home loan programs are generally intended for eligible owner-occupied primary residences rather than investment properties or second homes.
Do USDA income limits still apply?
Yes. Borrowers must meet applicable USDA household income limits and other eligibility requirements in addition to renovation-specific guidelines.
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