Financing in Queen Creek>Question Details

* Loren Hoboy…, Real Estate Pro in 85374

Is it true that with a USDA loan the pool value is not included in the appraisal value and the buyer needs to come up with the difference in cash?

Asked by * Loren Hoboy *, 85374 Sun Dec 18, 2011

The seller's agent advises that the USDA appraisers do not include the value of a pool in the appraisal. If the house does not appraise the Buyer will be required to come up with the pool value of $8-12,000 at closing, or they will need to switch to a FHA loan that will allow the pool to be included. Has anyone run into this before? Is it true?

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Administrative Notice 4608 summarizes the guidance. You can read it here: .

USDA home loans are intended for modest housing and in-ground swimming pools are beyond the scope of the program. Therefore, the contributory value of the pool cited in the appraisal pool must be deducted from the total value before computing the maximum loan amount. If you have any other questions, feel free to contact me at 888.851.1380 or
1 vote Thank Flag Link Sun Dec 18, 2011
Yes its very confusing - The home needs to appraise for more - They dont include the pool in the appraisal so you need to tell your buyers upfront that they may have to pay the difference - I let them know because my lender who does this always reminds me on the verbiage ! I hope that helps !
1 vote Thank Flag Link Sun Dec 18, 2011
I have a Awesome lender who does these loans all day long if you need someone -He is here in Arizona as well - Not sure if you are aware also Pinal County - San Tan Valley may loose the qualification soon for USDA - I have heard its any day so be careful with that as well !
0 votes Thank Flag Link Sun Dec 18, 2011
Thank you for this clarification.
0 votes Thank Flag Link Sun Dec 18, 2011
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