Homes That Qualify   Guaranteed loans can be made on either new or existing homes; Existing homes must be structurally sound, functionally adequate, and in good repair; There are no restrictions on the size or design of the home financed; The home must not be used for income-producing purposes; Homes must be located in rural areas. Rural areas include open country and places with a population of 10,000 or less and—under certain conditions—towns and cities with between 10,000 and 25,000 residents. USDA Rural Development field offices can determine eligible areas.