A buyer approached me with USDA financing? Any red flags/issues?

[Susan Parker]

This is my fourth flip in the last year and the first time a buyer with USDA financing has presented. My other buyers were conventional or cash. I havent had a FHA or VA yet, but I've heard they can be picky about inspections and codes. This is a century home that I've rehabbed. Anyone with experience with USDA? please share any advice as it will be greatly appreciated. I havent listed with a realtor, I always try to sell my flips first FSBO (and I've done that 3 out of my 4 flips). She is likewise not represented by a buyer agent (she had one, but the contract recently expired and she didn't re-sign with that agent. Open to your thoughts! Thank you BP community!

[Charlie MacPherson]

The biggest risk is that with no down payment, the buyer has almost ZERO skin in the game.  If they see a better property tomorrow, they can walk away and forfeit their minuscule deposit. Around here, it's $500.00.

USDA has about (and perhaps precisely) the same property standards as FHA - no peeling paint, loose railings, cracked glass, crumbly cement, etc.

If I had two identical offers, but one was FHA and one was USDA, I'd take the FHA every time, and conventional above either.