Skip to content
Dirt to Dream logoDIRT TO DREAM

Flagship center

USDA Land + Build Center

How eligible borrowers may be able to purchase land and build a primary residence through USDA-related financing options.

Go deeper

Two premium tools built specifically for USDA single-close construction.

USDA One-Time Construction Loan MasterclassUSDA Eligibility Checker

The three USDA paths

USDA Guaranteed Loan
  • Designed for eligible rural areas
  • Intended for primary residences
  • Household income limits apply
  • Property eligibility applies
  • Originated by participating approved lenders
  • Potential 100% financing for eligible transactions
  • Guarantee fees may apply
  • Not every lender offers construction financing
USDA Section 502 Direct
  • Administered through USDA Rural Development
  • For qualifying low- and very-low-income applicants
  • Payment assistance may be available for qualified borrowers
  • Income, property and repayment requirements apply
  • Application procedures differ from Guaranteed loans
  • Availability and processing times may vary
Single-close construction-to-permanent

Qualifying transactions may combine land purchase, construction, site preparation, approved infrastructure and the permanent mortgage into one closing.

  • • Land
  • • House construction
  • • Foundation
  • • Site work
  • • Well
  • • Septic
  • • Utility connections
  • • Driveway
  • • Permits
  • • Inspections
  • • Approved contingency
  • • Certain eligible closing expenses

Potential eligible costs are subject to current lender and USDA approval.

USDA step-by-step roadmap

  1. 1Review credit, income, debts, and savings.
  2. 2Confirm interest in a USDA-eligible area.
  3. 3Review household income limits.
  4. 4Locate lenders offering USDA construction financing.
  5. 5Obtain lender prequalification or preapproval.
  6. 6Identify eligible land.
  7. 7Confirm zoning, access, utilities, septic, and water.
  8. 8Select an approved builder.
  9. 9Finalize house plans and specifications.
  10. 10Complete appraisal and underwriting.
  11. 11Close the single-close loan, if approved.
  12. 12Begin construction.
  13. 13Complete inspections and draws.
  14. 14Convert to permanent repayment after completion.
USDA document checklist

0 of 20 complete (0%)

USDA property evaluation checklist

0 of 17 complete (0%)

Questions to ask a USDA lender

Print this sheet and take it to every lender call.

Official USDA resource center

Verify current eligibility and program rules directly with USDA or an approved lender.

What this means
  • USDA financing may allow eligible borrowers in eligible areas to buy land and build with little or no money down, but eligibility is confirmed only by USDA and an approved lender.
What to do next
  • Check the USDA property and income eligibility tools for your target area.
  • Call at least three USDA-approved lenders and ask about single-close construction.
  • Do not put land under contract until financing compatibility is confirmed.
Questions to ask
  • Do you offer USDA single-close construction loans?
  • Can the loan include land and construction?
  • Do you finance manufactured or modular homes?
  • What builder requirements apply?
  • What credit standards do you use?
Documents to gather
  • Government identification
  • Social Security information
  • Pay stubs
  • W-2s
  • Tax returns
  • Bank statements
  • Employment verification
  • Debt statements
Ask Dirt to Dream