USDA guidelines

QuestionsUSDA guidelines
dealpal Staff asked 3 years ago

Okay so I need some assistance here.   I’m in Arkansas and the place I’m looking to purchase has an Additional Dwelling Unit.   I looked on page 4 of chapter 12 in the HB-1-3555 and it states that a second additional dwelling isn’t necessarily a loan breaker.  The appraiser must look at certain details and indicate whether they feel the ADU would be considered a possible rental unit and/or multi family unit or if the property including dwelling is just a single family unit.    I looked on the appraisal and it does indicate it doesn’t have separte utilities, not going to be used as a rental unit.   Plus the unit is pretty much a storage now,  it was used as a personal deer processing camp, it has a kitchen but the stove doesn’t work, full bathroom, one window that opens a quarter of the way and just one door.   I’ve read regulations and it states minimum of 2 doors and a workable window, if you consider the entire square footage is less than 500 sq ft and if you put a bed in the supposed area it is less than the 70 sq ft for a required bedroom space.   The USDA kicked back application saying they are concerning with the ADU and I showed the LO the HB section plus the part on the appraisal report.    Will USDA accept this and perhaps approve the loan or is there a certain definition or classification that I can call it to where they might accept it?   I call it a man cave. lol 

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