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trying to get usda loan

will the condition of the house be in question if it is well below market comp with a usda loan
  • May 28 2009 - Kremmling
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Answers (3)

Michael is correct... the condition of the house will be an issue if there are habitability issues.  FHA (which I understand yours is USDA) sometimes will not fund a home if there is peeling paint.  I even saw a lender refuse funding when the laminate counter top in the kitchen was peeling a bit on the corner.

Underwriters can be picky.  I don't often hear of USDA issues too much in that respect, but if there is rot or missing appliances, they will show up on the appraisal and could become and issue.
  • March 18 2011
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That shouldn't be an issue.  Just finding a house in the right spot for the USDA loan should mean you've passed most of the requirements.  Kudos and good luck.
  • March 17 2011
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We just successfully completed a sale with a USDA laon and from what i undrestand, there were no requirements from USDA regarding the condition of the home. However, the bank or lender will often ask for things to be repaired if an appraisal or inspection reveals habitability issues.
Check at http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do to find out all of the property requirements.
-Mike
  • May 04 2010
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