Does USDA pay for the appraisal?

No usually the borrower pays for the appraisal

The buyer is responsible for the cost of the appraisal. In some cases your realtor may be able to negotiate a seller credit to cover part or all of your costs associated with the purchase.

On a purchase, the appraisal is always the cost of the buyer, regardless of the loan type. But you can negotiate to have "seller paid closing costs". I always hate that term because it makes it sound like your closing costs are free (the seller is paying them), but the reality is that it is simply a way for YOU to roll the closing cost into the loan itself as opposed to YOU paying them out of pocket. For USDA loans in MN, SD, or WI, visit me at www.JoeMetzler.com/usda

USDA is the lender not the borrower.. the appraisal is the responsibility of the person buying the home.. it's possible the seller can contribute to your closing costs in which the appraisal is included, but their contribution is usually issued at closing.. so you would have to pay it yourself and get reimbursed at close with this scenario. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

No, you will need to pay for the appraisal up front. However, if the appraised valued ends up coming in higher than the purchase price you may be able to roll in some of your closing costs into the loan itself. Best wishes, Sean