Yes, you can rent your home even if it is a USDA mortgage. However, beware, if there is a deficiency on the transaction, the USDA will still legally be able to pursue any deficiency.
People also ask
Can a borrower rent out a USDA guaranteed loan home?
They would like to know if they can rent out the home or is it required that they sell the home? Borrower’s that secure a United States Department of Agriculture (USDA) guaranteed loan have certified on the loan application and Form RD 3555-21 that they will occupy the property as their primary residence.
What are the property requirements for a USDA loan?
If you wish to purchase a home with a USDA loan, there are property requirements that must be met in order for the home to qualify for financing. These include property eligibility based upon the location of the home, as well as certain property types, and appraisal and inspection requirements.
How do I know if my property is eligible for USDA?
USDA Property Location Eligibility The first step in determining if a home is eligible to be financed with a USDA loan is to check if it is located in an eligible zone. The USDA guaranteed loan, which is also known as the 淯SDA rural development loan? is only available to finance rural properties.
Can I get a USDA loan for new construction?
Any new construction of a home that will be financed with a USDA rural development loan must meet a number of requirements. It is a rather complex undertaking, and we urge you to not rush into any new construction project without thorough guidance. We do not offer construction loans, but many other USDA mortgage lenders do.