What inspections are required for a USDA loan?
What inspections are required for a USDA loan?
Once a sales contract has been signed, ordering inspections may be one of the next steps, but what inspections are required for a USDA loan?
With so many types of inspections to choose from, this can be a common question, and having this information at the beginning of the process can help you stay organized and not get overwhelmed.
As a quick reminder, in addition to our USDA expertise, we are also a VA approved lender and work daily with low down payment conventional and the FHA program. Realtors and buyers refer to us for our overall Government loan experience, so keep us in mind for your next referral or when you need that expert 2nd opinion.
What inspections are required for a USDA loan?
As a starting point, remember that home inspections are not required for USDA loan qualifying. However, with that being said, they are highly encouraged for a buyer’s best interest.
Another point of confusion is what importance does the appraisal have with regards to inspections? Remember, an appraisal will provide an overview of the property with determination of value and that it meets minimum property conditions as outlined per USDA and HUD Handbook guidelines. – This should not be treated as a substitute for a home inspection
It is important to remember that if the appraisal recommends any additional specific inspections such as for the roof, foundation, plumbing, septic tank, etc., then those would also be required for review.
However, in the case of private wells or individual water systems owned and maintained by the homeowner, there will need to be a water test completed that meets either state or local requirements.
This test must be completed through either the local health authority or a state certified laboratory. If no specific quality requirements exist, levels established by the EPA will apply.
In summary, when questions arise about what type of inspections are required for a USDA loan remember the following key points:
- While home inspections are highly encouraged, they are not required
- After appraisal has been completed, additional inspections may be necessary
- Private Wells and individual water system will require a water quality test
- No septic tank inspections, unless otherwise required by the appraisal
If you have any questions about what inspections are required for a USDA loan, just call or email to discuss your scenario and let us show you the “Metroplex” difference”!
