Buy & Bail, USDA Loans on a Pool Home?
The family mentioned in the previous post about “Buy & Bail” wanted to take advantage of today’s great prices to buy their dream home, a sprawling pool home in New Tampa’s Live Oak Preserve built by Southern Crafted Homes. However, they did not want to sell their old home at a loss. When they asked about renting out the old home, we ran into “buy & bail” restrictions with FHA and Conventional Loans.
Searching for alternate ideas, I asked Bob Saltzman, veteran mortgage broker at HFN for some options. Bob suggested that the buyer consider a USDA loan, which does not yet have the same restrictions. The home was located at an address that was eligible for a UDSA loan with 100% financing! So far so good. The buyers also met the UDSA’s income eligibility guidelines. However, upon further review, the USDA no longer lends on homes with pools. Back to the drawing board.
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