What are the Minimum Property Requirements for a USDA Loan?

What are the Minimum Property Requirements for a USDA Loan? 

Understanding the minimum property requirements for a USDA loan is a frequent topic of discussion and one that I receive many questions on. In today’s video tip, we will get started with the basics and cover the details that you need to know!

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What are the Minimum Property Requirements for a USDA Loan?

USDA loans are covered by HUD Handbook guidelines for minimum property requirements (MPRs).

An FHA roster appraiser may certify compliance to the handbooks when inspecting the property

However, it is not acceptable for an appraiser to simply comment that the property “appears to meet” or “seems to meet” HUD Handbook requirements.

So what are some red flags to look out for?

While there can be any number of issues that may require repairs, a good rule of thumb is to observe the following:

Safety, Sanitary, and Structurally Sound

If your concerns impact any one of these aspects of the home, then it may very well need to be addressed prior to closing.

So, when asked what are the minimum property requirements for a USDA loan, use this information as a starting point when reviewing potential red flags.

It is also important to remember that while today’s topic covered the minimum property requirements for a USDA loan, understand that additional conditions can be requested by the underwriter or appraiser that go above and beyond depending on the circumstances of the situation.