Requirements for USDA Loans are pretty set in stone. Though income limits will vary based on the location of the property, other rules do not vary. Unfortunately for people hoping to qualify for a USDA loan in order to flip a house, these loans can’t be used to purchase an income producing property, and they only apply to owner occupied properties. So, if you want to use a USDA loan, it will need to be used for your permanent residence. You also have to be a U.S. citizen or a permanent resident.
So, if you already have your own home, and you’d like to purchase a property to fix-up and quickly sell, a USDA loan won’t serve that purpose. You also can’t use them to buy a house to rent to others.
These loans exist to help people find safe and sanitary housing. They help people purchase their residential homes in rural America. They are intended for people with low to moderate income. Some USDA loans even accept buyers with poor credit. Home buyers with poor credit simply face manual underwriting. USDA loans are great for the purpose they serve, but people interested in making a quick profit need not apply.
Are You Looking for a Hard Money Loan to Flip a House?
Paces Funding is a Hard Money lender offering hard money loans to purchase and renovate non-owner occupied residential and commercial properties throughout the Atlanta, Nashville, Florida, North and South Carolina metropolitan areas.
Call us at 404-814-1644 or contact us online to find out whether you might qualify for this type of funding. In the meantime, check to ensure that you meet our loan criteria. Our loan amounts can be up to 65 percent of the after-repaired value of the collateral—and if you use the loan for renovation or construction, the loan amount can be based on the collateral’s improved value.