The USDA home must be in relatively good condition
The USDA requires that properties that use their program meet certain property condition requirements. A home that needs major repair is not a good candidate for the program.
You can buy a home with a USDA Loan that needs a few repairs as long as…
1) these repairs are completed prior to closing or
2) the USDA will allow repair funds to be set aside and completed after closing, as long as the repairs do not involve structural repairs, electrical repairs, or plumbing repairs. The amount needed for repairs must not exceed 10% of the sales price. The repairs must be completed with 180 days of closing. Completion of these repairs will be verified by the appraiser,
USDA Requirements for Property Condition
The USDA appraiser will flag a property if they notice any of the items listed below…
Plumbing Leaks
Broken/cracked windows
Doors or windows that are unable to be opened
Exposed/damaged electrical wires
Rooms without heating
Cracks in the foundation
Homes older than 1978 can not have any chipped or peeling paint due to the presence of lead in paint prior to the 1978 Lead paint Rules
Bare exterior wood that is not stained or painted
Electrical outlets that are within 6 feet of a water source and not Ground Fault Interrupted (GFI outlets are a cheap and easy installation)
