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Can you finance roof repairs with a USDA loan?

September 29th, 2017 by usdaadmin

What can be done if a roof needs repaired with a USDA loan?

In light of the recent hurricanes this has been a common question, and as you can imagine. also a challenging one.

Thankfully, this is a scenario that we have tackled many times before and because of this success, we  have created a formula on how to handle roof repair issues with a USDA loan. In today’s video I will break down the steps on how to qualify for a USDA loan if a home needs roof repairs.

As we all know, 2nd opinions are always important, so if you have financing questions and are working with another lender, we offer this complimentary service where you can get access to an expert 2nd opinion on both pre-qualifications and those loans that are already in progress.

Also, if you have not yet done so, please download our USDA Blueprint for Success to help understand and maximize the benefits that a USDA loan has to offer.

Can you finance roof repairs with a USDA loan?

Last week we spoke about what repairs could be financed with a USDA loan after closing, and because updated USDA guidelines now specifically list roof repairs as an ineligible repair, they are not able to be financed into the loan after closing.

However, through proper planning and communication, my office has successfully navigated this situation in the past and I wanted to share these details in order to help put together a recommended game plan for your next scenario.Tampa FL USDA Approved Lender List

Remember, today’s topic is not just isolated to roof repair issues, because we have utilized this step-by-step method to handle various types of other USDA ineligible repairs so that they can be fixed prior to closing and thus allow for the property to meet USDA property requirements.

  1. In many cases if a Realtor, Seller, or Buyer knows that repairs or replacement of the roof will be needed, it may be listed on the sales contract as a condition.
  2. Once the repair issue has been identified, a roofing estimate or contractor’s invoice is obtained for the work to be done.
  3. The appraisal would be issued subject to completion of the roof repairs.
    • This means that the appraised value listed is subject to the required repairs being completed.
  4. We then approve the loan, submit to USDA, and wait for their commitment to return
  5. Once received, we then update all parties and the repairs may begin
  6. After completion of the repairs, the appraiser re-inspects the property to certify completion
  7. Appraisal certification of completion is received, and once approved, the closing process begins

Now that we understand the game plan, let’s review other important factors:

  • Tampa FL USDA Approved Lender ListCustomarily the roofer or contractor would agree to accept payment at closing
  • Since Metroplex Mortgage Services, Inc. is the USDA Approved Lender, it allows us to control and manage the process which minimizes the risk involved because at this point we already have loan approval and the USDA commitment issued before any repairs would be started.
  • Communication is key between parties

While It may sound complicated, but we have handled many transactions with USDA repair issues that needed to be done prior to closing, and this has proven to be a successful formula for a variety of situations.

As a final reminder, there is risk involved in every transaction, and other lenders may not have systems in place which can allow this type of flexibility. If you have a unique scenario, please use my team as a resource so we can help put together a plan and properly advise of the potential options.

Most importantly, remember that USDA loans are in the blood of my entire team!

As an USDA approved lender, we hold expertise in the USDA process and are a one stop point of contact from pre-qualification through closing.

Just call or email to discuss your scenario and let us show you the “Metroplex” difference!

(800)806-9836 X280

Let’s make it a great day and I look forward to seeing you right here for the next tip of the week!


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