a property in a rural area. The purpose of this is to encourage buyers to populate parts of the country that are as-now underpopulated. However, the USDA decides if any given property is eligible for a USDA loan. USDA loans have similar requirements to FHA and VA loans. However, the USDA requirements change much more regularly. If you are going to use the USDA program, the lender must know the most current requirements and make sure that the home will match them. Like the FHA and VA, the USDA also requires water tests for homes that are on a private well or a private water system. This is often the case with the rural properties the USDA covers.
HARD-TO-FINANCE PROPERTIES
There are certain types of properties that are more challenging to obtain a mortgage on than your traditional ranch in a nice suburb. We will turn our discussion here to review problem properties that are difficult to finance, going in order from easiest-to-finance to most-difficult-to-finance. A property that is hard to finance doesn’t mean that it can’t be financed, but there are intricacies to them that present complications. If your loan officer doesn’t know about the different requirements, you may not be approved for a loan. Single-Family Homes: The easiest property to finance is a single- family house. It doesn’t mean they’re problem-free, but single- family houses are a lot easier to get approved for a loan than pretty much any other kind of property. As usual, the home will have to go through the appropriate inspections, especially if you are going to take advantage of an FHA, VA, or USDA loan. For example, if the house has an old roof it may not be eligible for a VA loan. Your agent must check the property condition to make
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