USDA eligibility maps: what they are and how to use them

What is the USDA eligibility map?

According to Al Murad, executive vice president at AmeriSave Mortgage, USDA eligibility maps are searchable maps you can browse online that show you which areas of the country meet the location requirements for a USDA loan.

These maps let you check desired parcels for eligibility before getting too deep into the research process, he says, adding that USDA eligibility maps are created based on area population and typically updated on an annual basis.

Murad points out that USDA eligibility maps are an informational tool only. In other words, these maps can help you get an idea of whether a property qualifies, but they do not guarantee it.

You can use USDA loan maps as a starting point to search for a specific address or rural area and find out if a USDA loan might be a possibility. From there, you have to apply for a USDA loan for the property, confirm the home meets property and other eligibility requirements and qualify for financing.

» MORE: Does mortgage preapproval affect your credit score?

How do I use the USDA eligibility map?

To search for eligible rural areas with the USDA, visit the U.S. Department of Agriculture website. There, you'll see a map of the United States as well as a search bar and a tool that lets you zoom in and out.

From here, you can either:

• Browse the map by zooming into different regions of the country, noting the differences in colors on the map. Be aware that properties in darker-colored areas are not eligible for USDA loans.
• Search for a specific address in the search bar. Unfortunately, you cannot search by ZIP code or town only.

When you input a specific address, the map will show a pop-up indicating whether it is located in an eligible area.

What constitutes USDA loan eligibility?

While homebuyers need to meet specific eligibility requirements to get a USDA loan for their primary residence, there are property eligibility requirements, too. These include the following:

• Must be located in an eligible rural area: USDA loans can only be used in areas that are designated as “rural.”
• Must be a single-family dwelling: Properties must be for a single family; stand-alone homes, condominiums, manufactured homes, town homes and some other properties can qualify.
• HUD standards must be met: Properties must meet U.S. Department of Housing and Urban Development (HUD) requirements for safety and suitability and meet state building code standards.
• Must be modest: USDA loans only work for properties deemed "modest" by the USDA, meaning they do not have a market value in excess of the applicable area loan limit.
• Cannot have certain elements: USDA loans cannot be used for properties that have certain features, like an in-ground swimming pool or income-producing structures.

» MORE: Homebuying checklist

What qualifies an area as rural?

Properties deemed "rural" by the USDA are located in the "open countryside," in towns with fewer than 2,500 inhabitants or in urban areas with larger populations that are not part of larger metro areas.

The best way to determine if a property is located in a rural area as defined by the USDA is to use the eligibility maps. You can search by area or by inputting a specific address.

Bottom line

USDA eligibility maps can help you figure out where you can use a USDA loan to purchase a home, but don't forget about all the other requirements you'll have to meet. For example, there are income-based qualifications, and the property must adhere to certain standards.

If you can qualify for this type of loan from a reputable USDA lender, however, you can purchase a rural property at a competitive rate with no money down. That's worth exploring if you're considering a move out into a rural area. USDA eligibility maps are a great place to start your research.