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Answers (6)
- Chris Colvin, "203kChris"
- Contributions:9
This is an old post, but I have seen at least 6 of these this year alone, all around Atlanta. In GA there is a new State Statute that dictates the builder is required to provide a minimum 12mo warranty - from the point of Certificate of Occupancy. Assuming no breach of contract has occurred, and a certificate of occupancy has actually been issued. In case anyone new is reviewing this post - the above demand is clearly unfounded, and is probably a mis-communication that was cleared up. Ironically, that failed 'new construction' builder is probably now claiming to be a 'renovation specialist'... inside the 203k program. So, check the references...
- Open Home Mortgage
- Contributions:69
If it's an unfinished home (brand new), the builder probably never got the CO (Certificate of Occupancy) from the county.
On new construction, there are forms and warranties that the builder needs to complete and agree to.
Since the house has never been lived in, the Lender (and FHA) don't know that the home is habitable.
We do quite a bit of the 203k streamline loans, but they require that the home has a C.O.
On new construction, there are forms and warranties that the builder needs to complete and agree to.
Since the house has never been lived in, the Lender (and FHA) don't know that the home is habitable.
We do quite a bit of the 203k streamline loans, but they require that the home has a C.O.
- Jonathan Blackwell, "JonathanBlackwell"
- Contributions:19
203K loans require a C.O. at one point (unless you can provide all the warranty, specs, etc FHA requires on new construction) and are virtually impossible on unfinished new construction if the builder has been foreclosed. If you are purchasing an unfinished new construction foreclosure you need to use a Fannie Mae Homestyle
- Alma Kee, "Realtor Alma"
- Contributions:133
If the "builder" is doing the construction to complete the home, they may have to offer you a warranty on the work they perform or go with another contractor to complete the house. Sounds like a reasonable request from the lender.
- FriendshipProperties
- Contributions:783
That doesn't make much sense. Make sure your both referring to the same type of warranty.
- Myke Triebold, "myketriebold"
- Contributions:100
Clarify with your lender exactly what they want. It is difficult to navigate the 203K loan, with very few lenders doing it--remember, they are taking a chance on this home having the value--the value of their loan is dependent on guaranteeing that the work outlined in your contract with a home improvement company is fulfilled. The builder will not warrant, but you might get a home warranty through AHS (american home shield) or old republic home warranty--look them up on the internet and learn more about their coverage. Ultimately, you must fulfill the requirements the bank sets out for you if you want to borrow their money. Or find who else does 203K loans in your area--in our area there are only 2.
lender problems with 203k program
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