Yes, you can use a USDA renovation loan to buy a fixer-upper. However, you need to follow certain requirements. The estimated cost of the renovation cannot be more than 10% of the loan amount, and the renovations must be completed within 180 days of closing. Typically, the home requires only non-structural repairs, but you can do some structural repairs as well. The USDA home improvement loan also requires that the house is habitable, with the homeowner living in the home.