USDA 502 Direct Loan Dwelling Requirements

[Lauren Baker]

Hi Everyone!

I have recently been approved for a USDA 502 direct loan and am hoping to find a home that is somewhat of a fixer upper. I'm curious as to what the exact dwelling qualifications are. 

USDA regulation §3550.57 states "Existing dwellings must be structurally sound; functionally adequate; in good repair, or to be placed in good repair with loan funds; have adequate electrical, heating, plumbing, water, and wastewater disposal systems"

My question is more on the specifics of some of this language. What exactly does it mean to be "in good repair" or "adequate" 

Any input from inspectors that have experience with this loan would be very much appreciated! 

Thank You!

Lauren