Check the address first
Every USDA purchase starts with USDA's official eligibility map. Enter the address and it tells you whether the property is in an eligible area. Check before you make an offer, every time. Boundaries are updated periodically, so a home that wasn't eligible a few years ago might be now, and the reverse.
What eligible looks like around Orlando
Eligible areas are generally outside the denser parts of the metro area: outer portions of the surrounding counties, smaller towns, and some newer communities on the edges of growth. Many are within a reasonable commute of Orlando. The fastest way to know is to check specific addresses or ask me to scan an area for you.
Homes that qualify
Single family homes, townhomes and approved condos. New construction, including homes from builders in eligible communities. Homes with pools. Homes on acreage, as long as the land is typical for the area and isn't used to produce income.
Homes that don't
Two to four unit properties aren't eligible for the guaranteed program, so USDA can't be used for house hacking. See FHA or VA for that.** Income producing properties**, like working farms or homes with rental units, don't qualify.** Second homes and investment properties** aren't eligible.
Condos
A condo generally needs to be approved by HUD, VA, Fannie Mae or Freddie Mac to use USDA. Florida's newer condo inspection and reserve rules apply here too. See Florida condo guide.
Manufactured homes
USDA can finance new manufactured homes that meet its requirements, and existing manufactured homes are much harder. Ask early if you're considering one.
Property condition
The appraisal checks that the home meets HUD's property standards: safe, sound and sanitary. In Florida, older roofs and insurance are the biggest hurdles. See appraisals in Florida.
Building a new home
USDA offers a single close construction to permanent option through some lenders, and many buyers use USDA to purchase a newly built home from a builder in an eligible community.
Just outside the line
The Patels liked a community on the edge of Osceola County. Two homes they toured were just inside an ineligible area. A third, a mile away, was eligible.
Checking addresses before writing offers saved them from losing a deposit and time, and they bought the eligible home with no down payment.
USDA Appraisals and Property Condition in Florida
The standard
The appraiser confirms the value and checks that the home meets HUD's minimum property standards. USDA doesn't require a separate home inspection, but you should always get one.
Common issues
Roofs near the end of their life. Florida insurers are often stricter than the appraiser.** Peeling paint** on homes built before 1978.** Utilities** that aren't working.** Electrical hazards** and** water damage.** Foundation problems, which usually need an engineer's report.
Wells and septic
Many USDA eligible homes use wells and septic systems. Expect a water quality test on private wells, and a septic inspection if there are signs of problems or local rules require one. There are also minimum distances between a well and a septic system. Order these early.
Flood zones
If the home is in a designated flood zone, flood insurance is required, and new construction in flood zones faces additional rules. Get a flood quote with your homeowners quote.
Barns, guest houses and acreage
Outbuildings and acreage are fine as long as the property isn't used to produce income and the land is typical for the area. A guest house is generally acceptable as part of the home, but USDA isn't for buying rental income.
Fixer uppers and foreclosures
Bank owned homes can work if they meet property standards. Homes needing major work are harder. Required repairs usually must be done before closing, and the seller often handles them. Some weather related exterior work can be completed after closing with an escrow holdback. Repair costs can sometimes be included in the loan when the appraisal supports it.
Low appraisals and unpermitted work
If the value comes in low, you can renegotiate, cover the difference, or walk away depending on your contract. Unpermitted additions may not count toward value and can raise questions, so check permit history early.
The same Florida issues affect VA and FHA buyers. See Florida appraisal problems for more on roofs, panels and insurance.
A well test and a quick fix
Rob's USDA home in rural Lake County had a private well. The water test came back with a bacteria issue.
The seller had the well shock treated and retested. It passed, and the closing stayed on schedule.
Frequently asked questions
How do I know if a home is USDA eligible?
Enter the address on USDA's eligibility map.
Are there USDA eligible areas near Orlando?
Yes, generally in the outer parts of surrounding counties. Check each address.
Can I buy a duplex with USDA?
No. The guaranteed program doesn't allow two to four unit properties.
Can a USDA home have a pool?
Yes.
Does USDA require a home inspection?
USDA doesn't require one, but you should always get one.
Can I buy a home with a well and septic with USDA?
Yes. Expect a water test and possibly a septic inspection.
Can I buy a fixer upper with USDA?
Only if required repairs can be handled, usually before closing.
Does USDA require flood insurance?
Yes, if the home is in a designated flood zone.