USDA Allow Outbuildings

Created by Michael Dozois, Modified on Fri, 3 Jan at 10:14 AM by Michael Dozois

USDA allows the purchase of properties with outbuildings when they are not income producing.  Barns, silos and stables are fine for hobby farms.  However, if the seller is using the property for income producing activities utilizing any of the outbuildings, other structures or land, USDA requires lenders to assume the buyer will as well.  Even if the buyer states they intend to not use it for income producing purposes, the property would still be ineligible based upon the seller using it to produce income.   

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