USDA Guaranteed Questions

[huntsmama]

Good morning everyone!

So I was planning on taking the mortgage plunge in about 6-8 months but being human I can resist looking at the listings and stumbled across basically the perfect home. It is in a USDA qualified area and I would qualify for USDA but I'm not sure if it would work out for me. Can you borrow for reno with USDA like you can with an FHA 203(k)? Also, I'm not sure how much I would qualify for so if anyone can chime in on that I'd really appreciate it. I don't want to go apply if it wouldn't really workout anyway.

Income: ~$40,000 + ~$500/month child support

Debt: Currently just my car payment $282/month, student loans are deferred till 2017 as I'm in school, once they're out of deferment ~$300/month

Score: EQ: 691 TU from Walmart: 660

Employment: With the same employer for 2.5 years, recently promoted

Location: Upstate, NY

House: Single Family Home listed at $175,900, it's been vacant for 5 years and has no kitchen (see, reno $$ needed!) and is being sold in bankruptcy

Any help is so greatly appreciated and if I left out any pertinant info please let me know!!

[swtneka]

I'm not sure if USDA does those type of loans, u might want to talk to a USDA representative.

[sunnysideup]

We applied for a USDA guaranteed loan and looked at a house like that.  We were told that the house has to meet HUD requirements and you have to be able to live in it immediately.  So, if the kitchen needs reno - like the plumbing, or running water don't work, then it wouldn't pass the HUD inspection.  I don't know if they have any other programs that would allow for a reno.  You could probably find it by doing a search for USDA underwriting or handbook or something like that.