Post Frame USDA Financed?

[jeremy_cherokee]

I've been brainstorming ideas along with my in-law apartment post I posted about a week ago and got to thinking. I'm pretty sure that I would qualify for a USDA loan and was wondering if anyone knows if, when you use a USDA guaranteed loan if I could use that loan to pay for the house, land, and a post-frame garage?

I emailed my USDA rep but she's out of town today and, well, I'm impatient.

Thoughts?

 

[kd3pc]

you should be able to sign in to their website and use the "qualify" buttons..

 

[jeremy_cherokee]

I don't see anything on their site other than general income and location requirements.

 

[mopar01]

Nope. Goin through that right now. Home has to be move in ready and pass a pretty tuff inspection. At least in indiana. Cant be any damaged buildings on the property. Peeling paint even. Has to be almost perfect from what I understand. Dont think you can use fha either for that.

 

[jlckmj]

If you are going to live in the house, you would most likely be OK with a FHA 203K rehab loan. There are some hoops to jump through as far as appraisals before and estimate of value afterward, but it should work.

you find the house you want, make a deal on it, get a contractor to estimate the work you want, and then a FHA consultant checks it out and verifies weather it would be worth the money invested when done.

Look the loan program up on the FHA web site, it really is one of the only federal programs that I know of that works as intended.

Jim

 

[jeremy_cherokee]

I'm looking at building the house and the post-frame building new. The USDA lady said that I can do it (build the post-frame garage - dependent on the value of the property) but when I emailed a bank they said otherwise. I'd assume now I'd just have to find a USDA lender that will use the USDA's policies. Also - she did confirm that I cannot finish the work myself - I have to have the builder do all the work. But this builder I found seems to have a way around that so I'm talking to him tonight at 6. I have the 20% down for all of it but I'd much rather take a chunk out of those wonderful student loans if I can. Hopefully I get more info from the builder tonight.

 

[wo69442]

If you show you have 20% down in the bank USDA will not be an option. There are two types of USDA loans. Direct which you need to go direct through USDA and almost need to have poverty level income and it has a very subsidized rate like 1% interest. Guaranteed which is what banks and mortgage lenders offer that has much more generous income limits. The challenge is the cost and value of a garage that rarely adds a dollar for dollar value increase which may be an issue.

Best way to do it is to have builder finance the property, and you buy it from them complete so you don't need to deal with the construction part of it.

 

[jeremy_cherokee]

Interesting - good to know. thanks!

 

[Dustball]

This is a good presentation with examples towards the end on what is acceptable and not acceptable.

If your house has a garage and you want to build a separate pole shed- that would not be allowed. If your house has no garage, the pole shed would then be allowed.

 

[jeremy_cherokee]

That makes sense - i don't think I'm going to attach a garage as I want to utilize the beautiful views of the property and don't want that obstructed. That's worth walking a little bit to me.

 

[Dustball]

Doh, I just realized I never posted the link-

http://www.rurdev.usda.gov/SupportDocuments/OR_SFH_outbuildings.ppt

 

[jkwilson]

That makes sense - i don't think I'm going to attach a garage as I want to utilize the beautiful views of the property and don't want that obstructed. That's worth walking a little bit to me.

A house without an attached garage is a significant negative if you ever try to sell it. If you don't build it when new, plan for it so it can be added later without looking like a second thought.

 

[jeremy_cherokee]

A house without an attached garage is a significant negative if you ever try to sell it. If you don't build it when new, plan for it so it can be added later without looking like a second thought.

I agree. I found another plan that might work better for us and it has an attached garage.

I'm thinking of doing a Menards kit house. I might have a builder that would frame it, side it and roof it for me and I can finish inside. Should know more soon.

I'm thinking USDA may not work for me after seeing that powerpoint. We'll see. I really want to shop ...