Do USDA requirements allow financing for a home with an in-ground pool?
This week’s USDA loan tip will explain how a USDA Rural Home Loan can help your client purchase the home of their dreams, including the pool!
If you have a client purchasing a home with a pool and they have USDA financing, there are some guidelines you should know about! It is a myth that USDA requirements will not allow homes with in-ground pools! The truth is USDA requirements have specific guidelines that have to be followed in these cases.
USDA requirements allow for financing of homes with above ground pools without any additional guidelines. However, USDA requirements specify that when financing a home with an in-ground pool, the loan amount is based on the value of the home without any credit given to the pool.
The USDA appraisal will list 2 separate values for the property, one including the pool for the total market value and another without the pool for USDA loan amount purposes.
Here’s an example:
If a home is appraised with a pool at $100,000 but the pool is valued at $10,000 then financing will be based on $90,000. This scenario works best with under market valued properties, but this can also a good option when the buyer is willing to bring additional funds to closing to make up the difference. Especially if they want to avoid the higher monthly PMI cost associated with an FHA loan.
All in all, USDA guidelines do allow financing of properties with in-ground pools. The process may seem complicated, but that is what we are here for! Just call or email to discuss your scenario and let our USDA experience go to work for you.
For more information, visit USDA Property Eligibility Requirements.
Understanding the USDA Loan eligibility requirements can be challenging but my team is built to help home buyers become mortgage ready! If you are a realtor and have a client looking to purchase a home with USDA financing, help them prepare with The USDA Blueprint for Success!
Do you have a client experiencing financing difficulties on a USDA loan? Remember to take advantage of our free 2nd opinion service if you have not already done so. We are licensed in FL, TX, TN, & AL.
Just call or email to discuss your scenario and let us show you the “Metroplex” difference!
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