usda appraisals USDA Appraisals are required for all USDA loans to ensure that the value of the property is accurately determined. Appraisals may sound complicated but our network of USDA loan professionals can handle all of the details for you.

It is important that your appraisal comes in as high as possible due to the fact that you have the ability to borrow 100% of the purchase price! Make sure that you have a qualified appraiser to ensure that your appraisal meets the USDA appraisal guidelines.

If you are on the market to buy a home , call 888-664-8375 to speak with our USDA loan professionals today.


USDA Requirements

USDA rural housing loans are only for primary residence and must be in livable condition. They must meet state building codes and be located in a rural area. Appraisals must also meet all of the requirement set by USDA appraisal guidelines .

Basic Information About USDA Appraisals:

  • Must comply with the Uniform Standards of Professionals Appraisal Practice.
  • Appraisers cannot use factors such as age, sex, religion, disability, or family in valuing the property.
  • Appraisal must be ordered within 3 days of the USDA accepting the property.

If the house was built less than 2 years ago, you will need an appraisal. An appraiser makes judgments about the property’s value based on location, market value, construction quality, and amenities. Since you most likely will be looking at a single family home, they will need to look at sale comparisons as well. The appraiser must accurately report the conditions observed at the property and follow HUD standards. This means they will let you know about any needed repairs and make sure that everything is functional with no obsolescence.


USDA Appraisals

Before the USDA makes a loan, the agency’s interest in the property has to be adequately secure by the current value of the property. This is done through an independent appraisal by a qualified appraiser.

All appraisals must meet the following requirements:

Qualified Appraiser: Must be a state licensed appraiser who is on the USDA approved list.

Standards: All appraisals must comply with the current addition of the Uniform Standards of Professionals Appraisal Practice.

Timeline: The loan originator needs to order an appraisal within 3 business days of the USDA determination that the property is acceptable.

Nondiscrimination: An appraiser cannot use factors such as age, sex, religion, disability, or family in valuing the property.

Third Party Appraisals: The USDA may accept an appraisal by a participating lending institution.

USDA rural housing loans is only for primary residence and must be in livable condition. While loans can be made on new manufactured housing, which is permanently installed, the loans may not be available for existing manufactured housing unless the house had been financed through a USDA loan originally. These homes need to be modest in size, design, and costs.

They must meet state building codes and be located in a rural area. Keep in mind, pools are not allowed.

If the house was built less than two years ago, you will need an appraisal. An appraiser makes judgments about the property’s value based on location, market value, construction quality, and amenities. Since you most likely will be looking at a single family home, they will need to look at sale comparisons as well. The appraiser must accurately report the conditions observed at the property and follow HUD standards.

This means they will let you know about any needed repairs and make sure that everything is functional with no obsolescence.

For residential real estate appraisal, the lender is required to use a qualified appraiser, if the appraiser does not hold a designation from a professional organization, then the lender will have to obtain prior approval from Rural Development. In other words, the lender should use a HUD-approved/roster appraiser.

The Fannie Mae/ Freddie Mac form “Market Conditions Addendum to the Appraisal Report” is required.

A foundation and crawl space inspection will be completed reporting any evidence of infestation in the house or structure. A termite inspection is mandatory if they find evidence of decay, pest infestation, or suspicious damage. Evidence of dampness in the foundation or basement is closely scrutinized looking for mold and mildew problems. Anything that the appraiser finds will be subject to inspection and require the problems to be corrected or further inspections usually at a cost of the seller.

Your appraiser will examine mechanical, plumbing, and electrical systems to ensure that they are in proper working order. As the appraiser is not a home inspector, they are only turning on and off these systems and do not make a determination on their mechanical worthiness. This examination consists only of turning on the applicable systems and observing so that a determination can be made of their proper working abilities. Turning them on and off and checking the temperatures only tests water heaters.

This may sound complicated but our network of USDA loan professionals in will handle all of the details for you. It is important that your appraisal comes in as high as possible due to the fact that you have the ability to borrow 100% of the purchase price!