USDA Property & Appraisal
A borrower can qualify perfectly and still have a property that fails USDA eligibility.
Rural location is mandatory
Current Chapter 12 says only properties in areas USDA designates as rural are eligible for a guarantee.
Site standards matter
The lender must ensure the property meets USDA site guidance, including utilities, water/wastewater, road access and maintenance, and other factors affecting continued marketability.
Appraisal is part of eligibility—not a home inspection
The appraisal supports value and property compliance, but buyers should still use an independent home inspection for condition and defect discovery.
USDA rule, GUS result, or lender overlay?
If a lender says this cannot be done, identify the exact layer before treating the answer as universal. Use the USDA decline framework →
Official USDA baseline
USDA Chapter 12 — Property & Appraisal · USDA Guaranteed Program
Educational summary. Current USDA handbook, GUS findings and approved-lender requirements control the actual file.