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USDA Repair Escrow Loans. 0% Down, 6% Seller Closing Credit Allowed

Buy and fix a house in a designated USDA eligible area with no money down

With Millennial Home Loans quick online loan application, determining if you qualify for an USDA Repair Escrow Loan and for how much, has never been easier.

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Not ready to apply online? No problem. Answer a few questions, and a USDA Repair Escrow Home Loan Mortgage Expert will call you back.

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USDA Repair Escrow Loan interest rates change on a daily basis. To receive a quick quote on current interest rates Click Here to receive an update interest rate quote.

USDA Repair Escrow Loan Program Benefits

  • The USDA Repair Escrow Loan program allows USDA eligible borrowers to create one loan amount, including a repair escrow budget to make minor alterations and non-structural repairs, which when:
    • Purchasing a house can be combined with the purchase price
    • Refinancing an existing USDA Loan can be combined with the current mortgage payoff amount
  • The USDA Repair Escrow budget can’t exceed 10% of the final loan amount
  • Repairs are made after settlement, so there will be no delays on a transaction closing due to appraisal mandated repairs
  • Greater appraised value, as the USDA Appraiser will determine the property value based on the “after-completed value” Vs. the current “as-is value”
  • Lower Monthly Mortgage Insurance or PMI, compared to a comparable FHA Renovation Loan
  • Flexible credit requirements, with credit scores down to 620
  • Safe, secure 30 Year fixed rate mortgage
  • With seller help, no out-of-pocket closing costs
  • Most property types allowed

USDA Repair Escrow Loan Qualification Requirements

  • Property, including projected repairs from the Contractor Proposal, must meet USDA appraisal guidelines
  • Home must be habitable at the time of the application
  • No HUD Consultant required
  • Renovations must start within 30 days of settlement and be completed within six months
  • A third-party USDA Repair Escrow Contractor must complete all repairs
  • All borrowers on the loan must have a minimum 620 middle credit score
  • No foreclosure, short-sales, or Chapter 7 bankruptcies permitted within the last three years

USDA Repair Escrow Loan Eligible Repairs:

  • Eligible Repairs:
    • Cosmetic Repair and minor alterations
  • Ineligible Repairs:
    • Repairs related to the foundation or structural modifications
    • Oil tank repairs, removal, or remediation
    • Electric repairs that can't be completed in a timely basis and can put the occupants in danger
    • Plumbing repairs that can't be completed in a timely basis and can put the occupants in danger
    • Any repair affecting the livability of the structure
    • Any repairs that will take more than six months to complete
    • Any repair that is done as Self Help