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USDA Repair, Rehab, and Renovation 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, Rehab, and Renovation Loan and for how much, has never been easier.

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USDA Repair, Rehab, and Renovation 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 Renovation Loan Program Benefits

  • 100% Financing No Money Down USDA Renovation Loan Program
  • The USDA Renovation Loan program allows USDA eligible borrowers to create one loan amount, including a repair escrow budget to finance renovation and rehab projects (including major structural repairs), which can be combined with the purchase price
  • 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 640
  • Safe, secure 30 Year fixed rate mortgage
  • With seller help, no out-of-pocket closing costs
  • Most property types allowed

USDA Renovation Loan Qualification Requirements

  • Property, including projected repairs from the Contractor Proposal, must meet USDA appraisal guidelines
  • HUD Consultant:
    • Not required if total repair/rehab budget is less than $35,000 and no structural repairs required (Limited)
    • Required if total repair/rehab budget is greater than $35,000 and/or structural repairs are required (Standard)
  • Renovations must start within 30 days of settlement and be completed within six months
  • A third-party USDA Renovation Loan Contractor must complete all repairs
  • All borrowers on the loan must have a minimum 640 middle credit score
  • No foreclosure, short-sales, or Chapter 7 bankruptcies permitted within the last three years

USDA Renovation Loan Eligible Repairs:

  • Eligible Repairs:
    • Removing safety and health hazards
    • Making the dwelling accessible to persons with disabilities
    • Repair or installation of septic system and water wells
    • Additions or structural alterations
    • Modernization (kitchens and bathrooms, interior floor cover, exterior siding, etc.)
    • Installation of energy conservation or weatherization feature
    • Repairs to existing swimming pools, hot tubs, or saunas
    • Repairs to accessory dwelling units
  • Ineligible Repairs:
    • Installation of new inground swimming pools, hot tubs, or saunas
    • Repairs to new or existing manufactured homes
    • Repairs to condominiums
    • Converting structures to SFH dwellings (barns, schoolhouses, etc.)
    • Alterations that allow income-producing features
    • Installation of luxury items (exterior fireplaces and kitchens, etc.)
    • Repairs or improvements to common space areas (community meeting rooms, playgrounds, etc.
    • Any repair/removal/remediation of Oil Tanks
    • Tear downs to foundation and rebuilds are not permitted
    • Ineligible repairs for transactions below $35,000 (Limited Transaction):
      • Structural Modifications
      • Any repair/removal/remediation of Oil Tanks
      • Any repair/installation for private water systems (Wells)
      • Any repair/installation for private waste management systems (septic systems, lagoons, cesspools, pits, etc.)
      • Mold remediation