Credit Card Center Advertiser Disclosure

Frequent Contributor
Posts: 395
Registered: ‎08-11-2010
0 Kudos

USDA Rural Development for new construction?

We currently own 2.75 acres with a singlewide mobile home on the property, and a $54000 mortgage balance.  We would like to build a home on the property.  Does USDA do a new construction loan for rural development?  I have read through the literature but have found it confusing.  I think you have to prove you lack suitable housing.  Not sure if we could do that.


We also have a dairy farm on the property.  I thought I read no income producing properties can go through USDA.  We have taken a loss on the farm, does that mean it is still income producing? 

Any insight would be greatly appreciated.

Super Contributor
Posts: 8,706
Registered: ‎09-28-2007
0 Kudos

Re: USDA Rural Development for new construction?

Correct, USDA (at least the Guaranteed version) will not permit income producing properties, meaning any current land being used for agriculture or farming - dairy farm included.  Not many lenders will, although if farming is common in your area the local banks should have some ideas for you, if not be willing to offer you financing.


There are USDA programs that will finance farms, and there are USDA programs that will finance rural housing like you have looked into, so I'd imagine if you contact your local USDA Direct office they may be able to put together a package deal for the farm and your future stick built home.  One element might be subdividing a smaller piece of land off of the 2.75 acres for the home, and leave the remaining portion for the dairy farm.  You'd need cooperation from your existing lender, or to do it simultaneously with the funding of a new loan (since then your existing lender would be paid off/wouldn't care). is the link to the USDA Direct office finder.

Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime) since 2002, based in Irvine, CA and lending in all 50 states

Information that is needed to determine if you qualify for a mortgage

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.