topic USDA Loans- Barns/Structures?? in Mortgage Loans

USDA Loans- Barns/Structures??

Katytee — Tue, 25 Sep 2012 21:22:42 GMT

We're currently offering on a home that includes 5 acres and planned on using a USDA loan to help us with the down payment.

The unfortunate thing is that the property also has a "barn", or a medium sized metal building I guess they used to put horses in. No stalls or actual fencing inside, it's just the empty metal building with a dirt floor.

We're afraid to go any further with our offers and bidding as I recently was told that USDA does not cover barns or any sort of buildings on the property. Has anyone found a way to get around this? Is there any leniency?

Thank you for any help or advice you could give!

Re: USDA Loans- Barns/Structures??

goodygoody — Wed, 26 Sep 2012 02:33:06 GMT

I would call USDA - I wonder if they will cover it if the barn is not the only structure on the property? I know, also, that the acreage and property need to be within the norm for the area. So if everyone in the area where you want to buy have only .25 acre properties, 5 acres might not work for USDA, but if everyone has 4-5 acres it would work. Do you have a contact at your USDA you can ask these questions? Seems like they could advise you...because from what I understand, USDA differs depending on the state and even county where you're buying...

Re: USDA Loans- Barns/Structures??

sharpie — Thu, 27 Sep 2012 04:39:16 GMT

Are you doing Direct or Guaranteed? I just read about this tonight - the issue is with Direct only. At least where I am. Guaranteed has no such requirements. But just call your local office, they should be able to tell you.