@Anonymous wrote:
We are planning ahead and looking to apply for USDA if not for FHA
The property is basically owned by my father in law but my wife and I pay the mortgage company directly for the last several years.
Two questions reading the requirements:
1) No late payments on the rental for the last year" -> We will have one year of no lates but not three.
2) "Not an income producing land/property" -> Would this disqualify us as our house is split into two and our friends rents from us?
From what I understand, as far as #2, yes. If you use the property to make income, it would disqualify it from being considered from USDA. We were going to buy my mom's house, and it has a large barn on it. Even though the barn is a building I'd never walk in because it's basically been out of commission for years and inhabited by spiders and snakes, it's still in good enough physical condition to be used if it was cleaned out. And because livestock is considered a way to make income, the property wouldn't be eligible, even if I never planned on using it that way.
