if i have a home in a rural area in my name that is paid for can i donate it to my children name and apply for a rural develpment loan? so i can purchase a new home.

Depending on the value of the home that you presently own, you could "gift" the home to your children under your lifetime inheritance tax exemption. Make sure to record a quit claim deed of the property in your local county assessor's office. You should get legal counsel and seek professional advice from a CPA so that you are aware of all your options and legal obligations. Have fun shopping for a new home and make sure to buy before fall; otherwise, the USDA guaranteed home loan will have monthly mortgage insurance. Happy Memorial Day Weekend!

Yes you can. USDA stipulates that you cannot own another home.

Yes!