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USDA LOAN BUT WITH ABOVE GROUND POOL, how does this work?

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Anonymous
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USDA LOAN BUT WITH ABOVE GROUND POOL, how does this work?

I have pre approved for a usda loan, I looked at a home today but noticed in the back yard there was an above ground pool.  I don't want a pool, but the agent mentioned usda rual housing loan and pools  are a problem.  The home is a foreclosure, so bank owned.  If I am interested in the home and the home has the pool, bank owned, how does this work to get the pool removed for usda approval, or will it not work?  TY

 

 

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germaine47
Frequent Contributor

Re: USDA LOAN BUT WITH ABOVE GROUND POOL, how does this work?

My mortgage broker said that the USDA will not approve with a pool, you may have to talk with your lender to find out if their are any extinuating circumstances before you go under contract.  I placed a contract on a foreclosured home and most time those home are an AS-Is status the Seller most often times will not take care of the repairs.  l loved the home and I felt like it was move in ready but apparently the Appraiser found so many things that barred it from being USDA approved.

Fico September 2012; TU 681, EX 674, EQ 652
Fako October 2012: TU 706, EX 641,
Message 2 of 3
Anonymous
Not applicable

Re: USDA LOAN BUT WITH ABOVE GROUND POOL, how does this work?

You should consult Administrative Notice 4608 http://www.rurdev.usda.gov/SupportDocuments/an4608.pdf.  Only in-ground swimming pools are an issue, and they are not prohibited as long as  loan funds are not used to finance the contributory value of the swimming pool. 

 

A poster mentioned a house not meeting minimum property standards (which, by the way, are not particular to USDA considering the agency has adopted HUD Handbooks 4150.2 and 4905.1).  It is noteworthy that USDA allows a borrower to close on the home in its current condition and fund an escrow account at closing with loan proceeds in order perform post-closing repairs.  The provision for that is found in section 1980.315 of  the instruction.

 

 

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