I was approved for USDA loan for $225,000 the house I want is $233,000 is it possible to get in the home by paying the extra $8000 dollars up front ?

Asked by Maxine, Wesley Chapel, FL Fri Jan 11, 2013

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Andrew Schmitt’s answer
Andrew Schmi…, Agent, Riverview, FL
Fri Jan 11, 2013
Hello Maxine,

Yes, you can pay the additional 8,000 up front. You may also ask you lender if you qualify for a more expensive loan. Keep in mind your USDA lender is only going to lend up to 100% of the appraised value. Please feel free to contact me with any other questions you may have.

Andrew Schmitt
Yellowfin Realty
Sales Associate / Property Manager
Cell: 813-857-1543
1 vote
, ,
Fri Jan 11, 2013
Hi Maxine,

You have a couple of options.

1) Yes, you can make up the difference by putting money down.

2) Just because the seller is asking $233,000 doesn't meant that's what you have to offer. You can submit an offer for what you're approved for less just to get the negotiations started.

3) You can also get a second opinion on your pre-approval. For example: Your lender may have you pre-approved for $225,000 based on an interest rate of 3.5% where another lender (like me) maybe able to get you approved at 3.25%.

Please feel free to contact me for more information or help. You can also find info on my USDA Mortgage website by clicking the link below.

John Burke
Senior Mortgage Banker
Peoples Bank & Trust
1 vote
Marie Barakat, Agent, Carrollwood, MD
Fri Jan 11, 2013
The price they are asking is not what affects what the USDA will fund, it is the value of the home during appraisal that counts. So if the seller is asking for $233,000 and the appraisal comes back $220,000, USDA will only give you $220,000, even though you are actually approved for a higher amount. They will not put more money into a home than it is worth.
That being said, if the appraisal does come back at $225,000 and you want to cover the rest of the cost yourself, you can do that. You can put a larger down payment on the home and you will be fine. As long as USDA doesn't contribute more than the actual worth.

Hope this helped,

Marie Barakat
Coldwell Banker Residential
(813) 992-1217
1 vote
The only reply that may actually help this person!
Flag Mon Jul 1, 2013
Usda Mortgage…, , Jacksonville, FL
Wed Sep 16, 2015
Yes, your pre approval is based on the loan amount, not purchase price. However, your lender may be able to increase your approval amount so you don't need to pay the 8K. Just depends on your debt to income.

USDA Mortgage Source
Florida USDA Loans, 7 days a week.
Ph: 904-302-6060

0 votes
, ,
Mon Aug 5, 2013
Many mortgage agents will tell you to go ahead and put the money down because it will lower your loan amount and overall monthly payment. What many of them don't know and are not qualified to inform you about is that you may also have some investment options worth considering that will give you a higher return on your money and be more beneficial to you and your family in the long run. Give me a call and I'll let you know which I feel might be best given your situation.

Antonio Barnett
Senior Loan Officer
Cell: 614.806.1659
2701 N Rocky Point Dr, Tampa, FL 33607
NMLS# 287888
0 votes
minimarkwahl…, , Tampa, FL
Sun Jun 30, 2013
You agents are stupid. Why would you put your info on a public server like Yahoo!
0 votes
Lynn Brock, Agent, Sarasota, FL
Sun Jun 9, 2013
Maxine, if you have selected a home to purchase, written an offer which was accepted at $233,000, and your loan approval is for a max of $225,000. Yes, you can bring the difference to the table, however, you will also have to add your closing costs to the $8000. This might increase the overall amount required to $12,000.

If you will be using the USDA loan, you can go to their website and input the address to see if the property is located in area that qualifies.

Like an FHA loan, properties will have to be move in ready for a USDA loan. No leaking roof or green pool. If these conditions exist then you will have to consider a 203K FHA loan which is the purchase price plus cost of repairs = the loan amount.

The USDA loan utilizes FHA appraisal standards so the property has to be in pretty good condition. A bank owned in need of repairs will not qualify, as the repairs have to be addressed prior to closing or within 30days of closing.

Good luck

Lynn Brock
Brock Realty Inc.

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0 votes
Natasha McCo…, Agent, Tampa, FL
Fri Jan 25, 2013
Congrats on your approval!!!. Have you put in your offer yet? I have helped many buyers with purchasing their new home with a USDA loan. Feel free to contact us with any questions.
You can also check out my profile Natasha McCormick or Team RN . email teamRN2@gmail.com or give us a call 8136107884
0 votes
Tracy Hoyt, Agent, Valrico, FL
Mon Jan 21, 2013

Yes is the answer to your question. You can pay the difference but you may be able to get the seller down and save yourself the money. Are you working with an Agent? I would be happy to help guide you through buying a home in the Tampa area. Real Estate Agents are on your side. We want to help you make the more informed decision possible. If you would like to talk with someone I would be happy to answer your questions directly. Please review my profile on Trulia and send me your contact information with a good time to call or email me directly at THOYT@prutropical.com

Remember YOUR Agent works for YOU. Let them help make this an easy transition.

Very Respectfully,
Tracy Hoyt
Prudential Tropical Realty
0 votes
allan erps,A…, Agent, Pearl River, NY
Mon Jan 21, 2013
Think that may work but also try to negotiate
0 votes
Usda Mortgage…, , Jacksonville, FL
Mon Jan 14, 2013
Yes, you can pay the difference since your USDA pre approval is based on the loan amount and not sales price. Please visit us at http://www.usdamortgagesource.com for any questions about USDA loans in Florida.
0 votes
Janeth Rector, Agent, Tampa, FL
Fri Jan 11, 2013
You can pay for the difference, but as some of the agents mentioned, if the home is listed at $233,000 if there are no other competing buyers, you could probably get it for less. Are you currently working with an agent? You will benefit greatly from using someone representing your interests exclusively and not the sellers, especially for new construction. Good luck in your purchase. And congratulations, it is a great time to buy.
0 votes
Lisa Reeves, Agent, Tampa, FL
Fri Jan 11, 2013
Of course. Just because you can do 100% financing with USDA doesn't mean you have to. I have had people do FHA and put 20-30K down because the home was more than the max for FHA financing. Your mortgage broker should be able to answer questions like this one. If they are not able to answer your questions then contact Kevin Reeves at 813-728-4992 and he could help you out.
0 votes
Maria Gilda…, Agent, Manchester, CT
Fri Jan 11, 2013
Hi Maxine, hire a realtor to give you an idea of what the current market value of the subject property is. Just because it is listed for $233,000 does not mean that is the realistic market value of the house.

As others mentioned, the property should be appraised at the agreed purchase price.

0 votes
Karen Wingard, Agent, Tampa, FL
Fri Jan 11, 2013
yes call me at 813-695-1439
but you may want to offer lower. And you need to talk with your lender directly

The home may appraise for higher and no need for the additional money
0 votes
Antonio Vega…, Agent, Saint Cloud, FL
Fri Jan 11, 2013
Yes, maybe...USDA does not pay for pool. So if the home has a pool they may appraise it below the 233 asking price, and yes you will still have to pay for the pool portion out of pocket.

Use this link to find your closest USDA goverment office and ask your questions directly, you will get the most accurate answers that way. http://www.rurdev.usda.gov/FL-Contacts.html Was this answer helpful? If so please click on the "green thumbs up" or the "best answer".

Tony Vega
La Rosa Realty
0 votes
Ron Thomas, Agent, Fresno, CA
Fri Jan 11, 2013
You first need to know about the APPRAISAL; is it sufficient?
Have you had your Realtor do a CMA?
Is it possible to offer $225,000?
You need the answer to these questions before giving up $8000.
0 votes
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