Property Requirements (Appraisal)

Site & Building Requirements

 The property must be a single family dwelling or an approved condominium unit.

 The property must be located in an eligible rural area. See property eligibility website:

 The property must be located on a hard surface or all‐weather road.

 Dwellings must be located on a site which does not exceed 30% of the total value of the property. The 30% limitation may be exceeded when the value of the site is typical and cannot be subdivided into two or more lots.

 The property cannot be located in a floodplain unless all of the following requirements are met:

1. The dwelling must be in a town which has an approved Flood Plain Management Plan.

2. The location of the dwelling and planned development must be in accordance with the Flood Plain Management Plan.
3. The environmental impact and feasible alternatives must be reviewed by Rural Development.
4. The first floor elevation must be above the 100 year flood zone elevation.
5. Flood insurance must be obtained.

 The dwelling must be determined to be decent, safe and sanitary. This can be verified by a home inspection report or by an appraiser designated on the FHA Register.

 Property must only be one unit. No in‐law suites or basement apartments acceptable.
Existing Dwelling

 The Lender is responsible for all appraisals and inspections.

 The Lender will certify that the dwelling has adequate electrical, plumbing, heating, water and waste disposal systems and is free of wood boring insects; and meets requirements of HUD handbooks 4150.2 and 4905.1.

 The Lender certifies that all required development has been completed.


The property must be located in a designated rural area as designated by the RHS office. To determine eligibility, go to From the home page, click „Single Family Housing” under “Property Eligibility”. Enter the property address to get an instant determination or to view a map.


Single family detached non-farm residences.

The property must be located in a rural area, as designated by the local RHS office.

The value of the site should not exceed 30% of the total value of the property.

The property must be contiguous to and have access to a paved or all-weather surface street, road or driveway.

The property must have dependable water and waste disposal systems that are approved by local authorities. A septic inspection will be required. Also, properties with cisterns and wells will require a county water test by the local authorities.

For state specific requirements and complete details see Rural Housing web site:

Leaseholds are permitted if long-term leasing of home sites is a well established local practice, and such leaseholds are freely marketable in the area.


No Manufactured Homes that are used, must be brand new. 

No in-ground swimming pools are permitted

Properties located in a flood or mudslide zone are ineligible.


18 thoughts on “Property Requirements (Appraisal)”

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