Return to the Buying and Selling Homes Forum | Post a Follow-Up

 o
Rural Development Loans - same rules as VA, FHA?

Posted by southernstitcher (My Page) on
Mon, Jun 15, 09 at 11:43

If my buyer is getting a Rural Development loan: I know we'll have to use an FHA/VA inspector, not chosen by anyone associated w/ the loan. They could come from 50 miles away having no idea of our area, and use bad comps. But it's not just that which worries me.

My question is -- are inspections still a horror story with the government? We have 1920's frame home which needs updating, but it's well maintainted. We would rather re-negotiate with the buyer than make repairs. Her offer was $185 and the house was appraised at $200 last Oct. An appraiser who knows my area well recently told me our housing values around here have NOT declined in that time frame. (Louisiana, we've been spared to an extent). But I'm worried the UW will pressure the appraiser to come to the $185 asking price, leaving us open to further reductions. Does that typically happen?
With this type loan, do all the repairs HAVE to be done before closing, or would she still be able to buy the home if we're not willing/able to do the repairs?


Follow-Up Postings:

 o
RE: Rural Development Loans - same rules as VA, FHA?

Im in the middle of a transaction that is going with one of these loans now. The mortgage broker told me there was no special inspection like a VA or FHA loan. The only qualification is that the house has to be in a designated area. There is a website where you can check to see if the home falls into the approved areas.


 o Post a Follow-Up

Please Note: Only registered members are able to post messages to this forum.

    If you are a member, please log in.

    If you aren't yet a member, join now!


Return to the Buying and Selling Homes Forum

Information about Posting

  • You must be logged in to post a message. Once you are logged in, a posting window will appear at the bottom of the messages. If you are not a member, please register for an account.
  • Posting is a two-step process. Once you have composed your message, you will be taken to the preview page. You will then have a chance to review your post, make changes and upload photos.
  • After posting your message, you may need to refresh the forum page in order to see it.
  • Before posting copyrighted material, please read about Copyright and Fair Use.
  • We have a strict no-advertising policy!
  • If you would like to practice posting or uploading photos, please visit our Test forum.
  • If you need assistance, please Contact Us and we will be happy to help.


Learn more about in-text links on this page here