housesThere is no doubt about the fact that USDA home loans are a blessing for low income families who want to realize their dream of becoming owners of their own home. However, one question that is often asked concerning USDA loans is can a person who already owns a home qualifies for USDA mortgages?

To answer this question, this scenario can be possible; however the qualifying guidelines will definitely apply here. Let us take a look at the USDA loan eligibility criteria for people who already own a home.

USDA Mortgage Requirements for Homeowners

The first thing that the prospective borrower should remember is that a USDA loan is not meant for investment properties or second homes. The USDA mortgages are specifically meant for borrower ho are planning to buy primary or principal residence and that too in the eligible areas mentioned in the USDA guidelines.

Although, these loans can be available for those people who are planning to buy a new primary residence before their current home is sold but one needs to tread with caution in a scenario like this.
USDA loan eligibility criteria for this type of situation is obviously a little less simple and the borrower needs to get an approval by both USDA as well underwriting to have met their superiority condition. This could be done in one of the following ways:

  • If you are moving from a mobile home to single family residence
  • You need to find a larger place due to the needs of a larger family. For example, a house with two bedrooms and one bathroom will be considered inadequate for a family of 5
  • Your present house seems to be too far from your new place of work and you need to relocate
  • After the prospective borrower is deemed eligible by USDA he still needs to provide proof that he will be able to afford the expenses of both the houses as is current residence is not sold yet