Property Eligibility

•	In order for a property to be eligible for a Rural Development guaranteed loan, the property must be located in a rural designated area as defined in Rural Development Instruction §1980.312. You may view eligible areas on USDA Rural Development’s web-site at: http://eligibility.sc.egov.usda.gov.

•	Property must be a non-farm, non-income providing tract.

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According to Rural Development Instruction §1980.313 (e) "Generally, the value of the site must not exceed 30 percent of the total value of the property. When the value of the site is typical for the area, as evidenced by the appraisal, and the site cannot be subdivided into two or more sites, the 30 percent limitation may be exceeded."

•	Specific thermal and construction standards must be met as set forth in Rural Development Instruction §1980.313(f) Thermal Standards. Contact your County or State Rural Development office for area specifications.

•	In-ground swimming pools are not permitted.

•	Inspection requirements on Rural Development properties are as follows:

New Construction - If the Builder is providing a one-year warranty, the following inspections are required:

▪	Framing Inspection

▪	Footing Inspection

▪	Final Inspection

▪	Thermal Certification

If a 10-year Builder Warranty is provided, only a Final Inspection and a Thermal Certification are required. (An example of the Thermal Certification form can be found in the Forms Section of this manual.)

Existing Properties (Properties older than one year) Existing properties must meet the current requirements of HUD Handbooks 4150.2 and 4905.1, typically verified through an RHS Adequacy Certification (Existing Dwelling Inspection Report), or by the appraiser certifying in the comments section of the appraisal that the property meets HUD Handbooks 4150.2 and 4905.1. Additionally, a Thermal Certification is required. (A sample of a Thermal Certification form can be found in the Forms Section of this manual.)

Notes: (1) A number of Rural Development State Offices have drafted their own Adequacy/Thermal Certifications. (2) In Florida and Virginia, only HUD roster appraisers are permitted. Please contact your Rural Development State or County Office for details.