Can you purchase multiple parcels of land with a USDA loan?

Can you qualify for a USDA loan to buy land next door to the home you are purchasing?

What can be done when a homeowner wants to sell both their property as well as the lot next door within the same sale?    Thankfully, USDA guidelines provide flexibility for homebuyers to purchase multiple parcels of land with a USDA loan.

However, it is important to have a game plan and be prepared! In today’s video, I’ll explain how you can qualify to purchase multiple parcels of land with a USDA loan and provide a roadmap on how to buy the vacant lot next door as part of a single transaction. This is specific to a USDA loan since other loan programs have their own unique requirements.

Now, before we get started, don’t forget to take advantage and download our USDA Blueprint for Success with the link below. This free guide is designed to walk you through the process step-by-step and is a great tool for both homebuyers and Realtors alike.

Can you purchase multiple parcels of land with a USDA loan?

USDA Guidelines offer improved flexibility when looking to include in the purchase the land next door to the home you are buying.

While this is not a comprehensive list, below are 5 critical points to remember when purchasing a multiple parcels with the same USDA loan.

1. The USDA mortgage must provide a valid first lien
   covering each parcel.
2. Each parcel must be conveyed in its entirety and have the
   same zoning.
   • TIP: If the lots have not yet been combined, remember to separately list each parcel ID on the same sales contract
3. Parcels must be contiguous (connected) unless divided by a road and the remaining parcel cannot be developed.
   • For example: Waterfront properties where the parcel
     without the residence provides access to the water.
4. The entire property will contain only one dwelling but can have non-residential, non-income producing buildings such as a garage.
5. Lot must meet USDA site requirements:
   • be typical for the area
   • be predominantly residential in use, character and appearance.
6. Prepare to have all lots included with the final survey.

Summary – How to purchase multiple parcels of land with a USDA loan?

Remember that when trying to qualify for a USDA loan to buy the vacant lot next door to the home you are purchasing, guidelines will vary between loan programs as well as between lenders, so upfront communication is critical prior to signing a sales contract.

Here at Metroplex, we encourage both homebuyers and Realtors to call and discuss your scenarios.

As a USDA Approved Lender in Florida, Tennessee, Alabama, and Texas, let our USDA experience and expertise  go to work for you.

Just call or email to discuss your scenario and let us show you the “Metroplex” difference!

(800)806-9836 Ext. 280

SeanS@MPLX.org

We are here to help you in each step of the mortgage process!

Lastly, don’t forget to discover all of our FREE USDA Resources.

These educational downloads include our USDA Blueprint For Success and our guide to USDA Financing for New Construction.

Make it a great day and I look forward to seeing you for the next tip of the week!