This week I did a home for a USDA loan that had asbestos siding. The Realtor said that an inspector from USDA had been there and "accepted" the house as long as an appraiser did a thorough inspection for repairs. I called the local USDA office and asked them about the asbestos siding and they said it would go as long as none of the shingles are broken or in bad condition which they were not. If everything you read or hear about asbestos is true I personally would not want to live in a home with that type of exterior. I am now wondering if FHA requirements are the same? I know alot of FHA and USDA requirements are the same however some are different as I have learned the past few years. I would like to know in case I ever get a house like that for an FHA loan.