The Rural Development loan criteria is more about the quality and the location of the home, rather than who the seller is. As long as the home meets the qualifications, then I would not think a foreclosure is an issue. Good luck,
You sure can as long as the home is located in an eligible area and it will pass a standard FHA appraisal. This means the home has to meet HUD/FHA heath and safety standards.
Please feel free to contact me for more information or help with your USDA mortgage. You can also find more info on my USDA mortgage website by clicking the link below.
Senior Mortgage Banker
Peoples Bank & Trust Co.
ERA Premier Realty Partners