USDA Loans

[Anonymous]

Can you get a USDA loan to include repairs on the house, appliances etc? Up to the appraisal value of the home. It says on the website, how does this work?

[DanTheMan77]

I will be doing this once I get my home inspection done, but here's the info I've gathered from the USDA so far. You can include repairs that are considered to be health and safety items. These are repairs that would be noted during a home inspection, up to the appraised value. You can repair a roof or plumbing (for example) but can't put in a new kitchen just because it's dated. USDA requires you submit a list of required repairs and then you need to get estimates of the repair costs. If the numbers all work out, the repairs are paid for at closing or the funds are put into escrow at closing to be paid once the work is complete.

[Anonymous]

Can you do this with the USDA guaranteed loan? What if the home needs new appliances in the kitchen to be livable?

[DanTheMan77]

I am not familiar with the guaranteed program, but I know others on here are and can likely help you. I know that the only appliance USDA Direct considers necessary for a home to be livable is a stove. One thing I have learned is that each local office seems to interpret the rules somewhat differently. The only way to know the answer for sure is to ask someone in the office you are working with. Any advice others give you on the Direct program will be personal experience at best, and may or may not apply to your situation.

[BrianB_The_Loan_Professor]

I do not know of any banks that will do this with a guaranteed loan

You can get a loan up to the appraised value however any overage must go towards closing costs.

Good Luck

Brian