Question about USDA and Short Sale (appraiser, inspector, contract, offer)

[mcrowe03]

Im currently buying a short sale and plan to use the USDA loan program. Ive already put an offer on the house (about a month ago) and have just given another extension to the contract, however im curious about one or two issues with the home.

The house has a couple minor issues like a hole in the basement door, a missing floor cover for central air duct, a deck rail that has come loose and needs to be repaired (nailed back in), and also a section of laminate flooring in the kitchen which seems to have cracked up (can probably be glued back down).

My question however, lies in the basement. It is a standard basement, but one third of the basement is a two car garage. There is no issues with the basement as far as moisture etc, and the previous owner even started to finish it off and is for the most part complete (just needs recepticle covers and flooring). I am curious though, because when they finished the basement off, they took one of the garage wells and used half of it to make a 4th bedroom. SO basically its one full garage bay and another half garage bay, and theres literally about 6 feet from the wall of the bedrrom (which is already finished off and sealed in) to the garage door.

Would USDA have any reservations about this in combination with it being a short sale, or should it be ok? Any insight is appreciated. When i spoke with my loan officer she said it may pass, but would be up to the opinion of the appraisor/ inspector.

[rjrcm]

USDA approval would not be influenced by short sale status. They may have issues with some of the other items you mentioned. As your loan officer said, it will up to the appraiser to call them out or not.