USDA Guidelines – Loans on leasehold interests

1980.314  Loans on leasehold interests

Back to USDA Rural Home Loans home
Back to USDA Guidelines main

A loan may be guaranteed if made on a leasehold owned or being acquired by the applicant when the Lender determines that long-term leasing of homesites is a well established practice and such leaseholds are freely marketable in the area provided the Lender determines and certifies to RHCDS that:

(a)  Unable to obtain fee title.  The applicant is unable to obtain fee title to the property.

(b)  Unexpired term.  The lease has an unexpired term of at least 40 years from the date of approval.

Back to USDA Rural Home Loans home
Back to USDA Guidelines main

Similar Posts:

• USDA Guidelines – Escrow accounts for exterior development
• USDA Loan Guidelines – Collateral
• USDA Loan Guidelines – Transactions which will not be guaranteed
• USDA Loan Guidelines – Applicant eligibility requirements
• USDA Loan Guidelines – Charges and fees by Lender