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eric_veronica
284 Posts |
 Posted - 07/03/2009 : 09:58:56 AM
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I am hearing some conflicting information about property restrictions for USDA RD mortgages. Does anyone have any experience with a property with a couple large outbuildings? Whether it was an approval or a denail I would like to hear some experiences. My understanding is that if the property has outbuildings that are big enough to be used to generate income or start a business the the home is ineligible. Below is a link to the property in question
http://www.realtor.com/realestateandhomes-detail/9903-Douglas_Temperance_MI_48182_1108238204
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just in kase
1512 Posts |
Posted - 07/03/2009 : 11:01:42 AM
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http://www.rurdev.usda.gov/ca/pdf%20files%20and%20documents/grh%201980-d.pdf
page 18. ;) |
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eric_veronica
284 Posts |
Posted - 07/03/2009 : 11:16:49 AM
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Is this the part you are referring too?
1980.313 Site and building requirements.
(a) Rural area. The property on which the loan is made must be located
in a designated rural area as identified in § 1980.312 of this subpart.
A nonfarm tract to be purchased or improved with loan funds must not be
closely associated with farm service buildings. |
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just in kase
1512 Posts |
Posted - 07/03/2009 : 11:25:26 AM
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hmm, granted i am not USDA UWer but, i did grow up on working cattle ranch and know more than most about livestock. to me that looks like a busienss. all the people i know that have 10-20 horse stalls is generating money.
what does the borrower do for a living? if they are not involved in any livestock business, you may have shot. |
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eddieinab
681 Posts |
Posted - 07/06/2009 : 07:20:06 AM
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| ours got shot down because there was a separate 800 sq ft building with a shower and toilet. USDA, not the lender, the lender loved it and was ready to close, USDA said no go and killed the deal! |
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eric_veronica
284 Posts |
Posted - 07/06/2009 : 07:41:13 AM
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Eddie,
What was there reasoning. Did they give you an explanation or did they tell you that it would work if it was a certain size? |
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eddieinab
681 Posts |
Posted - 07/06/2009 : 07:47:47 AM
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it was the 2nd structure could be used by someone to live in!
our only option was to tear it down, but we submitted it knowing it was there and her mother-in-law was going to be living there! |
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