FHA USDA VA Approved and Eligible Homes
FHA, USDA, & VA Approved & Eligible Homes for Financing
If you are considering purchasing or refinancing a home using one of the Government's Insured Mortgage Loan Programs, such as Federal Housing Administration (FHA), Veterans Administration (VA) or United States Rural Development programs, then it will definitely help you to understand which types of properties are eligible and which properties are excluded for mortgage financing.
In addition, there are some additional property inspection requirements the Government has for these mortgage loan programs.
If you cross a property that seems to be outside what is defined herein, please call us and we will be happy to answer and or research for additional clarification. The last thing we would want you to do is to make an offer, pay for an appraisal and then get blindsided by some unknown requirement that neither you or your real estate agent had any knowledge of. So lets dive right in.
A List of residential property types
- Condominium: A multi unit housing development.
- Non Warrantable Condominium: A condominium complex has a short term rentals, high percentage of rentals, pending litigation, under construction.
- Single Family Residential Homes: A stand alone one unit home.
- Duplex: A 2 Unit residential home.
- Multi-Unit Home: One to four units.
- Mobile Home: Single Wide & Doublewide.
- Manufactured Homes: Built in a factory but meet or exceed site built homes.
FHA approved property types: owner occupied only
- Condominium
- Single Family Residence
- Duplex
- Multi Unit Home: One to Four Units
- Manufactured Homes
- Mobile Home: Doublewide Only *limitations on max. loan amounts apply $ 92,904 land & mobile home.
Note: FHA has long list of additional property requirements if the property is not a typical, or has any maintenance needs, wells, septic tanks etc. When you find a property that is not a typical, we suggest you call with any questions you may have.
USDA approved property types: owner occupied only for rural properties
- Single Family Homes
- Duplex
- Multi Unit: One to Four Units
- Manufactured
Note: USDA provides 100% mortgage financing, and because of the 0 percent down payment, or 100% financing, they have some pretty strict requirements that most homes and properties already meet. However, be prepared to have well water test for bacteria and other matters. If there is a septic tank on the property than it will be required to under go an easy affordable inspection. All septic tanks must have a a life expectancy of greater than 5 years. For the most part, all these additional requirements are for your protection as well.
VA approved property types: owner occupied & second homes allowed
- Condominium
- Single Family Residence
- Duplex
- Multi Unit Home: One to Four Units
- Manufactured Homes
- Mobile Home: 25 year max loan term & 20 years on smaller units*
Note: VA requires a Wood Destroying Organism Report Inspection this is to your added benefit to insure no termites or carpenter ants. In addition, VA requires any wet wood, exterior to be repaired along with other standard safeguards that you find with most loan programs.
*While mobile homes are still an eligible property type for VA, many lenders have declined to provide financing. EquiFund has a long list of mortgage lenders and some that specialize in these mobile home type properties.
Other conditions may apply. Underwriting guidelines change from time to time, and from lender to lender. Upon finding the home for you, we advice you to talk with a lender that has the years of experience to properly identify any potential pitfalls or additional requirements that can be addressed before making a real estate offer to purchase.
Best Regards,
From the Staff of EquiFund Mortgage
