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New Contributor
Posts: 88
Registered: ‎06-01-2011
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USDA Direct and In ground swimming pools

The rules exclude in ground pools. There is a property I am looking at that has a pool in the very back of the yard that is fenced in and covered and has not been used for years. I have absolutely no intention of repairing it for use.

 

The house is perfect for us. It is outdated but there is plenty of space and the house is sound. The issue is the pool.

 

The rules state that removing before or after closing is unacceptable. Is there a way around this? Filling it in? Can an exception be made?

 

There are slim pickings in my area for homes so unless something new pops up in the next 2 months, I am SOL.

Super Contributor
Posts: 9,674
Registered: ‎01-28-2010
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Re: USDA Direct and In ground swimming pools


iamwhoiam wrote:

The rules exclude in ground pools. There is a property I am looking at that has a pool in the very back of the yard that is fenced in and covered and has not been used for years. I have absolutely no intention of repairing it for use.

 

The house is perfect for us. It is outdated but there is plenty of space and the house is sound. The issue is the pool.

 

The rules state that removing before or after closing is unacceptable. Is there a way around this? Filling it in? Can an exception be made?

 

There are slim pickings in my area for homes so unless something new pops up in the next 2 months, I am SOL.


So you are saying that even if you fill the pool in with dirt.....it is still considered a pool ?   And USDA won't finance any property with a pool, right ?

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Valued Contributor
Posts: 2,732
Registered: ‎08-13-2009
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Re: USDA Direct and In ground swimming pools

lol -  tell the lender it's a container garden!  Smiley Wink

Valued Contributor
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Registered: ‎08-13-2009
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Re: USDA Direct and In ground swimming pools

1.  Does the listing say it has a pool?  If yes, have the seller change that IMMEDIATELY and print out a new MLS listing without the pool mentioned.

 

2.   Fill in the pool and landscape over it.   How will the lender know if there was a pool?  Probably can't tell unless they know the history of the house or look at the MLS listing.

 

3.   The appraiser won't see a pool, so it won't be mentioned in his report.

 

4.  The inspector wont' see a pool, so it wont' be mentioned in his report.

 

5.   Tell the sellers NOT to mention that there USE TO BE a pool.

 

6.  Tell the realtors NOT To mention that there USE TO BE a pool.

 

I hope all of the above works for you.

Contributor
Posts: 102
Registered: ‎01-10-2012
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Re: USDA Direct and In ground swimming pools

I was unaware that USDA wouldn't finance a house with a pool.  Can you tell me where you found this info please?

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Posts: 6,662
Registered: ‎03-06-2010
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Re: USDA Direct and In ground swimming pools


IOBA wrote:

1.  Does the listing say it has a pool?  If yes, have the seller change that IMMEDIATELY and print out a new MLS listing without the pool mentioned.

 

2.   Fill in the pool and landscape over it.   How will the lender know if there was a pool?  Probably can't tell unless they know the history of the house or look at the MLS listing.

 

3.   The appraiser won't see a pool, so it won't be mentioned in his report.

 

4.  The inspector wont' see a pool, so it wont' be mentioned in his report.

 

5.   Tell the sellers NOT to mention that there USE TO BE a pool.

 

6.  Tell the realtors NOT To mention that there USE TO BE a pool.

 

I hope all of the above works for you.


****Don't do this.   It is considered loan fraud.  There are other sources of information to determine if there was a pool previously; for example, an inground pool is on your property tax records.

 

Why don't you check to see if you can get a waiver for the pool issue? It's always best to go in with accurate info...don't get yourself caught up in fraud.

Valued Contributor
Posts: 2,732
Registered: ‎08-13-2009
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Re: USDA Direct and In ground swimming pools

StartingOver10 - if the home owners (aka sellers) filled the pool and landscaped over it, wouldn't that be legit?

 

Is there a different method for in ground removal?

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Community Leader
Super Contributor
Posts: 6,662
Registered: ‎03-06-2010
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Re: USDA Direct and In ground swimming pools

The seller could do it, but they might need a permit to do so. In our county you need a permit for everything....lol.  They might be able to do it under an 'owner/builder' permit.

I am only mentioning the permit portion because that is what most people forget about when they go to demolish something. And, if the pool is removed, it ought to reflect that on the tax rolls too.

 

The very best thing to do is find out if USDA will give a waiver first.

Super Contributor
Posts: 9,674
Registered: ‎01-28-2010
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Re: USDA Direct and In ground swimming pools

 

OP stated that removing it before or after closing it not acceptable......sounds like it wouldn't fly regardless of who drives in and dumps the dirt.

 

A few other ideas:

 

1)  empty, dry, paint it, install stakeboarding rails, ramps, etc...   it's a park !

 

2)  fill partially with sand and fence it in ~ giant litter box or sandbox depending on who your kids are...

 

3)  wintertime luge track ?

 

4)  bomb shelter ????

 

 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
New Contributor
Posts: 73
Registered: ‎09-12-2011
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Re: USDA Direct and In ground swimming pools

[ Edited ]

iamwhoiam wrote:

 

 

The rules state that removing before or after closing is unacceptable. Is there a way around this? Filling it in? Can an exception be made?

 

 


When we bought our house, the seller (an investor group composed of REALTORS. eesh.) tried to push us into an USDA loan. No idea why, we were going FHA. But anyway, our realtor cut them off and said the property has an in-ground pool. Not happening. Makes me wonder how they didn't know this, and it makes me a little scared for people who hire them. But that's OT. Smiley Happy

 

You say the rules state before or after closing. Which makes me think that a pool can't be filled while under contract to satisfy closing/loan reqs. It makes no sense to me that you couldn't buy a house that EVER had a pool. That would be sort of, well, nuts. But then again...the process is nutty as a whole. Anyway, if the pool could be filled by the owners while not under contract, and then sell it...? 

 

I'm not sure how you'd get them to agree, but. If it's unusable, it's only going to be a detriment to their selling it anyway, not to mention unnecessary home ins expense. Are you working w a broker? I'd ask for clarification from them?

 

And good luck. We have to fill-in ours this spring. I wish it was already done. Smiley Sad

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