USDA Home Loans and Home Inspections Don’t Mesh

Many home buyers get a home inspection prior to purchasing. We think that’s a great idea, but recently, we’ve run into some last minute problems that you should be aware of if you are using USDA Home Loan Financing!

A monster problem that we are starting to run into is that if the investor, Chase for example, knows that there is a home inspection, they want to see it and they want all issues on the report fixed.  Even simple stuff.

We are sometimes advising clients to avoid putting the home inspection on the HUD. Granted, this is a PROBLEM, because it means that if the borrower was going to pay for the inspection at closing or the seller was reimbursing the buyer at closing the buyer has to absorb the cost outside of closing.

But that’s a better scenario than having to do a bunch of insignificant repairs that is discovered by the investor the day of closing. Or worse repairs that the buyer was going to do himself after the fact.

If you have questions about USDA Home Loans, and purchasing a home in NC – please call Steve and Eleanor Thorne, USDA Home Loan Experts in NC 919-649-5058


  1. You make a great point about thinking twice about placing the inspection fee on the HUD. I just had a deal with a conventional loan where the escrow officer sent a termite report to the funder by accident…..and termite report was not in the purchase contract but it was being paid through escrow. Yup, you guessed it……underwriter called for repair and treatment of termites based on the termite report.

    Love your blog, well done.

  2. Another Realtor/Loan group that is afraid for the consumer to see the facts in fear of loosing a deal. It is all about your money,

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