Process of FHA rehab loan & appraisalHi. I was recently pre-approved for an FHA loan. I would like to make an offer on a house, but my realtor tells me that the peeling paint on the basement walls may be flagged during an FHA inspection/appraisal. It would have to be fixed, she said, for an FHA loan to go through. She said something about possibly repairing the walls with the seller's permission before closing, either getting the seller to do it or I would have it done. It's also possible that the loan could be an FHA rehab, and I'd have a contractor come in and repair the walls and floor. Assuming the seller accepts my offer. My realtor wants me to get an estimate from a contractor now.My question is: I would like to make an offer on this house. At what point do I have an appraiser or inspector come in to determine what FHA would find objectionable and what needs to be fixed? Would the written offer include a contingency clause that addresses that? It seems like I should find out what FHA would flag now, rather than down the road. The cost of the repairs would factor into my offer amount...My realtor and the FHA-familiar loan officers I've met with haven't told me anything helpful regarding this, and I'm getting frustrated.Thanks very much,GraceSeptember 01 2010 - US00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.