USDA loans for situations that don't fit the usual box.

Divorce and separation

After a divorce, your ex's income no longer counts toward your household, which can help you get under the income limit. If you're separated but still married, how your spouse's income is treated depends on whether they live with you and on your documentation. Your divorce decree also matters for which debts count. Bring it early.

Short sales and deeds in lieu

USDA generally treats foreclosures with a three year wait. Short sales and deeds in lieu are often treated similarly, with possible exceptions depending on your payment history before the sale. Ask early, because the details matter.

Forbearance and loan modifications

A past forbearance or modification doesn't automatically rule you out. Lenders look for a record of on time payments since, often 12 months.

Federal debt, taxes and child support

Delinquent federal debt, like defaulted student loans, generally has to be resolved before a USDA loan can close. Back taxes and past due child support usually need a repayment plan with payments made.

Retirees

There's no age limit. Social Security, pensions and retirement distributions can count as income, and households with a borrower 62 or older get an elderly household deduction for the income limit.

Unmarried couples and roommates

Unmarried partners can buy together if both are on the loan and both live in the home. A roommate's income counts toward the household limit even if they're not on the loan.

Buying for a parent

USDA requires the borrower to live in the home, so you can't buy a USDA home just for a parent to live in. A parent can live with you, and their income counts toward the household limit.

Buying from family

Family sales are possible, with an appraisal and terms that reflect the market. Ask early so the contract is structured correctly.

Citizenship and residency

USDA requires borrowers to be U.S. citizens, U.S. non citizen nationals or qualified aliens. Federal residency rules have tightened in recent years, so confirm current requirements before you apply.

Occupancy and renting later

You'll need to move in within a reasonable time after closing, usually about 60 days. USDA is for your home, not a rental. If your life changes after you've lived there, renting it out later isn't necessarily a problem, but you can't buy with that plan.

Already own a home

You generally can't get USDA if you already own an adequate home within commuting distance. If you're relocating for work or your current home no longer fits your family, ask, since there are exceptions.

A fresh start after divorce

Dana's household income was well over the USDA limit while she was married. After her divorce, it was just her and two kids.

With her income alone and the deduction for each child, she was comfortably under the limit and bought a home in an eligible area with no down payment.