Can you use the USDA loan to purchase homes that are foreclosed upon, bank owned, or short sale?My wife and I are interested in a house, but is currently banked owned (Im assuming that means it got foreclosed upon).Is it still eligible for the USDA?August 04 2013 - Florence00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.