Profile picture for owlchar

what condition does the house have to be in to get get approved for a usda loan?

Looking at a house we love it is pre-approved for fha rehab when we were pro approved we could get a usda loan but the fha came back as refer. So we are hoping we could use usda to get house and be able to fix things with that or?
  • October 28 2013 - Grand Mound
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We 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.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (4)

An FHA 203K Rehab loan may be the best fit for the property if it is in need of repairs.
  • October 29 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We 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.

USDA is of course, location dependent, assuming the home is located in a USDA area, there are USDA fixer programs, very similar to the FHA fixer program.  Sounds promising, but it will take work.  The only USDA fixer loan I helped a buyer with was direct from the USDA, not a bank lender, confusing, I know - but the USDA loan can be obtained 2 ways, through a bank (their money) or direct from the USDA - yes, money from the Dept of Agriculture.

If you have a home picked out, it may take too long to go the USDA direct route.  If you are starting the qualifying now, look up the USDA (located at Hwy 101 and Black Lake Blvdin the US Forestry Bld.) and talk to Shayna Dickey.  Very helpful.  She helped my client with the USDA fixer loan, among a few other clients with other USDA direct lending purchases.

The condition the home needs to be in at the closing, or after the fixer program is complete - everything working and in good repair, some of the noted items - working heat in each room, safe wiring, a good roof and siding, all working windows, insulation, no chipping paint, no hazards (handrails, open wiring, etc.)

Good luck, I know the lending process can be complex.
  • October 28 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We 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.

Profile picture for owlchar
okay thank you very much good to know so may have to try with fha and see if we will get approved for it
  • October 28 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We 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.

If the reason the home was pre-approved for a FHA rehab (203k) loan was due to required repairs, then it is very unlikely a RD loan through USDA will be an option, because the appraisal for both RD & FHA loans require the appraiser to evaluate the condition of the home.

  • October 28 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We 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.