if i do a usda loan can i include repairs?

You can borrow up to the appraised value.

It's technically possible but very rare to find a lender that offers that option. We will allow minimal repair costs but generally only weather related needed repairs required by the appraiser. I can help with a FHA 203k which allows as little as 3.5% for a downpayment.

USDA will only lend to 103.5% of the sales price.. (100% of the sales price, and 3.5% USDA fee for a total of 103.5%). USDA is unlike other loan's where if the appraised value is greater than your purchase price, then they will allow you to finance closing costs or repairs so long as you do not exceed the appraised value plus USDA's guarantee fee. This however is USDA's policy.. every lender can add their own rules above what USDA requires, so it's possible your lender will not allow repairs to be financed. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

I actually just had this scenario last week, and they won't allow for an "escrow hold back" for repairs - the house to be livable. If you are wanting it strictly for cosmetic repairs - then I would not recommend putting that in your 30 year financing. It's always better to do short term financing on cosmetics; since it would be much less expensive doing it outside of closing your mortgage loan. If there are major issues - we do have a 203(k) loan that only requires 3.50% down, and you could fix whatever is needed after the closing, and have the money set aside. Please feel free to call at 713-569-0025 if you need further details. Thanks! Mary

Realistically, no. The USDA loan does allow up to 102% in a loan amount, but only if the appraisal comes in at 102% or higher. The program really isn't set up for kitchen or bathroom repairs. For that, the most popular program is an FHA 203k Rehab loan, which is specifically setup for allowing repairs. USDA is no down payment with .50% mortgage insurance, while FHA is 3.50% down payment with 1.35% mortgage insurance. So talk to your local mortgage broker about your wants, needs, and goals. In MN, WI, or SD, I handle both USDA and 203k loans. Visit me at www.Minneapolis-Mortgage.net