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USDA Loans- Barns/Structures??

Established Member

USDA Loans- Barns/Structures??

We're currently offering on a home that includes 5 acres and planned on using a USDA loan to help us with the down payment.


The unfortunate thing is that the property also has a "barn", or a medium sized metal building I guess they used to put horses in. No stalls or actual fencing inside, it's just the empty metal building with a dirt floor.


We're afraid to go any further with our offers and bidding as I recently was told that USDA does not cover barns or any sort of buildings on the property. Has anyone found a way to get around this? Is there any leniency?


Thank you for any help or advice you could give!


Starting: 535 (EQ)
Current: 638 (EQ) FICO 9/2012
Goal: 640 - Mortgage here I come!
Message 1 of 3
Regular Contributor

Re: USDA Loans- Barns/Structures??

I would call USDA - I wonder if they will cover it if the barn is not the only structure on the property?  I know, also, that the acreage and property need to be within the norm for the area.  So if everyone in the area where you want to buy have only .25 acre properties, 5 acres might not work for USDA, but if everyone has 4-5 acres it would work.  Do you have a contact at your USDA you can ask these questions?  Seems like they could advise you...because from what I understand, USDA differs depending on the state and even county where you're buying...

Message 2 of 3
Regular Contributor

Re: USDA Loans- Barns/Structures??

Are you doing Direct or Guaranteed?  I just read about this tonight - the issue is with Direct only.  At least where I am.  Guaranteed has no such requirements.  But just call your local office, they should be able to tell you.


Message 3 of 3