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USDA construction-permanent

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lessismore2014
Frequent Contributor

USDA construction-permanent

I applied for a USDA loan today. When answering the questions on their website it states I qualify for both a direct or a guaranteed loan. My question is this? I know my income is ok and my credit is ok but the question about inadequete dwelling got me stumped. I want to move because I live in a drug infested block and to top it off I'm right across the street from a bar and there's always a fight going on. They pick up and purchase drugs right beside my home and sometimes stay there to do them. I have already asked people to move and go elsewhere. I don't know if the USDA will take this into consideration. I live in the city and want to move to a rural area. I want to have a house built so I picked construction-permanent loan purpose. I don't believe that I would be able to get a loan for $206K elsewhere. I have money saved for whatever necessary. I don't know that I'd qualify. Any thoughts?

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2 REPLIES 2
goodygoody
Regular Contributor

Re: USDA construction-permanent

If you are renting, your housing is "inadequate."  If you own, I don't know if you can get the USDA loan, but I think something would have to be wrong with your current home (not the neighborhood) to make it inadequate, though I could be wrong.  Maybe someone else could chime in on that in particular...

Message 2 of 3
pmarti8
Valued Member

Re: USDA construction-permanent

In adequate housing according to the USDA is if  the home is structually unsound. 

 

Also, if you have a two bedroom home but have five people living in the home this would make the home inadequate.

 

I hope this helps.  Check the USDA website it will give you more detail.  Hope that helps


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