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Answers (9)
- Jeff Johnson, "Jeff AJohnson"
- Contributions:12
There is an loan for you, its called a FHA 203k program. It allows for you to ppurchase the home, and escrow up to 16% of the value for repairs that need to be completed right after the closing. This amount cannot exceed $31,000. and bids for any repairs must be from licensed contractors.
- Jonathan Blackwell, "JonathanBlackwell"
- Contributions:19
Don't let the seller pigeonhole you into the wrong loan product. Get pre-approved for a FHA 203K or Fannie Mae Homestyle and have you lender write an overlay letter to the seller letting them know property condition is not an issue.
Seller's don't determine loan product, loan officers do.
Seller's don't determine loan product, loan officers do.
- Peter Boyle, "Peter Boyle MN"
- Contributions:20
We have had success at convincing bank sellers/listing agents to accept FHA offers when the buyer is taking advantage of the FHA 203-k program. The main reason banks think they can only accept Cash or Conventional offers is that the property is not currently in a condition to pass an FHA appraisal without work orders. But the 203-k program is a Purchase Rehab program where we actually fund an escrow account at closing, built in to the mortgage, to make all improvements. With this program we can close prior to the work being done as long as the work orders are accounted for in the repair escrow, and the borrower promises to get the improvements accomplished within 6 months.
Once you get the seller to see that their objection to FHA financing is invalidated by the 203-k program, many of them will allow that financing. It is also far better than doing one mortgage now and paying another $5,000 to refinance in 4 months.
- ChrisxxinxxMN
- Contributions:4
Seller is Bank of america so you would think they would know what condition it needs to be in to get a loan. On a good note we were able to finance through a local bank with a 3 yr balloon with the ability to refi after 6 mo without penalty( except another closing). I will be able to fix and refi within a year so it works for me. Thanks for the replies.
Chris
- Michael Emery, "MikeEmery"
- Contributions:7298
If you are working with a Realtor, I think your agent needs to tell the listing agent that you have been turned down for conventional financing due to the condition of the property and the only option the seller may have (with any buyer) is a cash sale - which could seriously impact the sale price of the home.
I get irritated when I see listings on MLS that say a home will qualify for FHA (or even conventional) when it's clear from the Truth In Housing report that there is enough wrong with the house that would disallow an FHA loan unless the seller made repairs.
Either the listing agent is not doing their job or there is a complete lack of understanding as to what is required by lenders to make the deal.
I get irritated when I see listings on MLS that say a home will qualify for FHA (or even conventional) when it's clear from the Truth In Housing report that there is enough wrong with the house that would disallow an FHA loan unless the seller made repairs.
Either the listing agent is not doing their job or there is a complete lack of understanding as to what is required by lenders to make the deal.
- Andrew Adams, "203K Specialist"
- Contributions:9349
To be an approved contractor you need to be licensed by the state. Any broker or seller that is excluding FHA 203K financing from a property that needs home improvements is doing the seller a dis service by eliminating potential buyers. More buyers...higher demand...higher price!
Seller's beware if your agent gives you that advice move on!
- ChrisxxinxxMN
- Contributions:4
Additional info:
pre approved for 230k
offer on house 99k
FICO 790's myself and spouse so credit shouldn't be issue
This house is in the exact neighborhood we have been looking to buy in.
Wish I had a rich uncle about now.
pre approved for 230k
offer on house 99k
FICO 790's myself and spouse so credit shouldn't be issue
This house is in the exact neighborhood we have been looking to buy in.
Wish I had a rich uncle about now.
- ChrisxxinxxMN
- Contributions:4
That is what we wanted to do but seller said no. I also did some research on that and foud that 203k approved contractors are required.
Chris
Chris
- Karen Sanchez, "KarenSoldIt"
- Contributions:67
Did you look at an FHA 203K?
It's a fixer loan. They may consider that.
It's a fixer loan. They may consider that.
I want to buy a REO house for primary residence that needs repair
Thanks,
Chris
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