We are getting usda on a REO so yes you can. Keep in mind the property has to pad their appraisal. We have a leak in the garage (from bathroom) that we are hoping is not considered "a hazard" on the property. If it is then fannie mae has to fix it for usda to approve our file. We are patiently waiting for the appraisal to happen but sandy had other plans and the power company isn't giving priority to turning on gas and power for appraisal. =/ thankfully there was no flooding or damage to the property or neighborhood.