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.