Usda direct repairs

[Spfm275]

There is a house I wanted to look it, the realtor said it needed repairs and only qualified for a conventional loan or cash. I said what about the usda loan she said no you can't do an FHA...ok...anyway the thing that needs to be repaired is the deck, can they put that into the loan to repair after purchase?

[rideswithchrist1]

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@Spfm275 wrote:
There is a house I wanted to look it, the realtor said it needed repairs and only qualified for a conventional loan or cash. I said what about the usda loan she said no you can't do an FHA...ok...anyway the thing that needs to be repaired is the deck, can they put that into the loan to repair after purchase?

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So, it depends on WHAT the repairs are and how much it will cost. With USDA direct, you can roll in the cost of repairs but they take the amount of repairs and add 50% to it and hold it in a reserve (escrow) so the cost of the home plus repairs has to be no more than what you are qualified for. 

FHA is not the same as USDA Direct. 

 BUT you need to ask the person supplying the loan, some sellers will only take Cash or Conventional because they don't want to deal with the rest. There was a house on market with foundation repair that sold cash only.

[ShanetheMortgageMan]

FHA also offers a 203(k) rehab loan where you can finance the cost of repairs/renovation.