Comments on: The FHA Appraisal – Which Homes Qualify for FHA loans? http://www.realty4atlanta.com/the-fha-appraisal-which-homes-qualify-for-fha-loans/ Search for homes for sale with no registration required! Wed, 08 Feb 2012 17:41:15 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Dan Connolly http://www.realty4atlanta.com/the-fha-appraisal-which-homes-qualify-for-fha-loans/comment-page-4/#comment-15713 Dan Connolly Tue, 24 Jan 2012 00:05:06 +0000 http://www.realty4atlanta.com/the-fha-appraisal-which-homes-qualify-for-fha-loans/#comment-15713 The bank is not responsible for repairs but I think that more and more they are doing some repair to get the house sold. It is definitely worth a shot. Another option would be to switch to an FHA 203K loan which would let you finance the repairs. Only some FHA lenders do these type of loans and the downside is that the interest rate may be a bit higher. The bank is not responsible for repairs but I think that more and more they are doing some repair to get the house sold. It is definitely worth a shot. Another option would be to switch to an FHA 203K loan which would let you finance the repairs. Only some FHA lenders do these type of loans and the downside is that the interest rate may be a bit higher.

]]> By: Jessica http://www.realty4atlanta.com/the-fha-appraisal-which-homes-qualify-for-fha-loans/comment-page-4/#comment-15619 Jessica Thu, 19 Jan 2012 20:55:49 +0000 http://www.realty4atlanta.com/the-fha-appraisal-which-homes-qualify-for-fha-loans/#comment-15619 Dan, I recently put down an offer for a house that was bank owned by BOA. BOA accepted my offer and we are moving along in the process. We had our inspection done yesteday, and the inspector came back and notified us that not only was the roof in poor condition, but also there were small signs of mold in the basement and the water heater needed to be replaced. We informed our realtor of this issue and he seemed to think it was going to be a huge problem considering we are taking out an FHA ARM loan. However, after speaking with our mortgage broker, he seems to think that when we sound out the actual appraiser, he will go back to the bank to inform them that this house cannot be FHA approved unless these repairs are made and that sometimes the bank will fix these issues (even on foreclosures) because they want to get rid of the house. How does this typically work? Is the bank responsible for getting the house in shape to be approved for an FHA loan? or will we need to make the improvements ourselves? And if that's the case, how does this work? Do we repair the roof ourselves and replace the water heater then get the house appraised again? Sorry for all of these questions but I am curious to hear your thoughts. Thanks! Jessica Dan,

I recently put down an offer for a house that was bank owned by BOA. BOA accepted my offer and we are moving along in the process. We had our inspection done yesteday, and the inspector came back and notified us that not only was the roof in poor condition, but also there were small signs of mold in the basement and the water heater needed to be replaced. We informed our realtor of this issue and he seemed to think it was going to be a huge problem considering we are taking out an FHA ARM loan. However, after speaking with our mortgage broker, he seems to think that when we sound out the actual appraiser, he will go back to the bank to inform them that this house cannot be FHA approved unless these repairs are made and that sometimes the bank will fix these issues (even on foreclosures) because they want to get rid of the house. How does this typically work? Is the bank responsible for getting the house in shape to be approved for an FHA loan? or will we need to make the improvements ourselves? And if that’s the case, how does this work? Do we repair the roof ourselves and replace the water heater then get the house appraised again? Sorry for all of these questions but I am curious to hear your thoughts.

Thanks!

Jessica

]]> By: Dan Connolly http://www.realty4atlanta.com/the-fha-appraisal-which-homes-qualify-for-fha-loans/comment-page-4/#comment-15611 Dan Connolly Thu, 19 Jan 2012 15:40:23 +0000 http://www.realty4atlanta.com/the-fha-appraisal-which-homes-qualify-for-fha-loans/#comment-15611 I am sorry, normally I get an email when someone posts on my website but that function quit working and suddenly I realized that I had unanswered posts. It may be too late for this, but you can get a 203K loan to address repairs, if the appraiser requires them. Stained carpet probably won't be an issue unless it is really terrible or mold. Typically they don't test AC in the winter if the temp is below 50, so that might not be an issue. Some lenders ask for the inspection, so it may come up, then you can go to a 203K. I am sorry, normally I get an email when someone posts on my website but that function quit working and suddenly I realized that I had unanswered posts.

It may be too late for this, but you can get a 203K loan to address repairs, if the appraiser requires them. Stained carpet probably won’t be an issue unless it is really terrible or mold. Typically they don’t test AC in the winter if the temp is below 50, so that might not be an issue. Some lenders ask for the inspection, so it may come up, then you can go to a 203K.

]]> By: Dan Connolly http://www.realty4atlanta.com/the-fha-appraisal-which-homes-qualify-for-fha-loans/comment-page-4/#comment-15610 Dan Connolly Thu, 19 Jan 2012 15:34:42 +0000 http://www.realty4atlanta.com/the-fha-appraisal-which-homes-qualify-for-fha-loans/#comment-15610 FHA doesn't want to make loans on houses that need work. The way around it is to get an FHA 203K loan that will finance the repairs. The lenders who do those loans have someone who comes out and monitors that the work is being done correctly and cuts checks to the contractors as they complete the various phases. They oversee the jobs and make sure that the contractors are licensed and insured etc. The reason is because there are lots of foreclosures out there where the homeowner took on a job that turned out to me harder and more expensive than they thought, they couldn't finish and the lender gets the property back with work half completed. FHA doesn’t want to make loans on houses that need work. The way around it is to get an FHA 203K loan that will finance the repairs. The lenders who do those loans have someone who comes out and monitors that the work is being done correctly and cuts checks to the contractors as they complete the various phases. They oversee the jobs and make sure that the contractors are licensed and insured etc.

The reason is because there are lots of foreclosures out there where the homeowner took on a job that turned out to me harder and more expensive than they thought, they couldn’t finish and the lender gets the property back with work half completed.

]]> By: Angela http://www.realty4atlanta.com/the-fha-appraisal-which-homes-qualify-for-fha-loans/comment-page-4/#comment-15580 Angela Wed, 18 Jan 2012 15:48:51 +0000 http://www.realty4atlanta.com/the-fha-appraisal-which-homes-qualify-for-fha-loans/#comment-15580 This is all freaking me out. We just applied for an FHA loan on a house that we plan to renovate--new floors, appliances, electrical, paint and/or replace dry wall (this is a pre-1978 house). Why does all this have to be done before the mortgage is approved? This is all freaking me out. We just applied for an FHA loan on a house that we plan to renovate–new floors, appliances, electrical, paint and/or replace dry wall (this is a pre-1978 house). Why does all this have to be done before the mortgage is approved?

]]> By: Dean http://www.realty4atlanta.com/the-fha-appraisal-which-homes-qualify-for-fha-loans/comment-page-4/#comment-14772 Dean Sun, 25 Dec 2011 00:00:19 +0000 http://www.realty4atlanta.com/the-fha-appraisal-which-homes-qualify-for-fha-loans/#comment-14772 I am purchasing a home with a USDA loan. The house is in excellent condition however one of the 2 AC units appears to not be working. Also the electric water heater needs to be replaced. The carpets are stained but no holes or tears. Also there are some drywall patches on the walls that are not painted where they patched some scratches. The home is a forecloser being sold as is. Will I need to repair any of these prior to closing on the loan or can I do it afterwards or do they require estimates and tie it into the loan? Also which ones do I even need to be concerned with? Also all the windows are in great condition and open, close, and lock but a few are missing screens. I just want to know what to expect. I will have some extra money in a few weeks to make some of these repairs if needed, but the AC unit worries me as I don't know if it needs to be repaired or replaced. Or am I ok because one of the 2 units works? They are on separate thermostats. Thanks! I am purchasing a home with a USDA loan. The house is in excellent condition however one of the 2 AC units appears to not be working. Also the electric water heater needs to be replaced. The carpets are stained but no holes or tears. Also there are some drywall patches on the walls that are not painted where they patched some scratches. The home is a forecloser being sold as is. Will I need to repair any of these prior to closing on the loan or can I do it afterwards or do they require estimates and tie it into the loan? Also which ones do I even need to be concerned with? Also all the windows are in great condition and open, close, and lock but a few are missing screens. I just want to know what to expect. I will have some extra money in a few weeks to make some of these repairs if needed, but the AC unit worries me as I don’t know if it needs to be repaired or replaced. Or am I ok because one of the 2 units works? They are on separate thermostats.
Thanks!

]]> By: Dan Connolly http://www.realty4atlanta.com/the-fha-appraisal-which-homes-qualify-for-fha-loans/comment-page-4/#comment-13973 Dan Connolly Wed, 30 Nov 2011 17:39:17 +0000 http://www.realty4atlanta.com/the-fha-appraisal-which-homes-qualify-for-fha-loans/#comment-13973 Sorry that I missed this post when it came through! I may be too late on this, but I would try to get them to replace it. You may be able to go with a HomePath renovation loan and get the carpet replaced, and the cost added to the loan, if they refuse. There are some benefits to the Homepath product. The rates can be competitive with FHA, they have similar down payments, but Home Path does not have MIP (mortgage insurance). Sorry that I missed this post when it came through! I may be too late on this, but I would try to get them to replace it. You may be able to go with a HomePath renovation loan and get the carpet replaced, and the cost added to the loan, if they refuse. There are some benefits to the Homepath product. The rates can be competitive with FHA, they have similar down payments, but Home Path does not have MIP (mortgage insurance).

]]> By: Dan Connolly http://www.realty4atlanta.com/the-fha-appraisal-which-homes-qualify-for-fha-loans/comment-page-4/#comment-13972 Dan Connolly Wed, 30 Nov 2011 17:34:02 +0000 http://www.realty4atlanta.com/the-fha-appraisal-which-homes-qualify-for-fha-loans/#comment-13972 FHA loans do not have a provision for HVAC systems to work for any amount of time past closing. The appraiser checks to make sure that it is working at the time of the appraisal, but FHA does not offer any warranty on anything. There are independent warranty companies which will warrant the mechanical systems in your home, for a fee, but once the furnace has broken down it is too late for the third party warranties. FHA loans do not have a provision for HVAC systems to work for any amount of time past closing. The appraiser checks to make sure that it is working at the time of the appraisal, but FHA does not offer any warranty on anything. There are independent warranty companies which will warrant the mechanical systems in your home, for a fee, but once the furnace has broken down it is too late for the third party warranties.

]]> By: Dave http://www.realty4atlanta.com/the-fha-appraisal-which-homes-qualify-for-fha-loans/comment-page-4/#comment-13970 Dave Wed, 30 Nov 2011 17:05:53 +0000 http://www.realty4atlanta.com/the-fha-appraisal-which-homes-qualify-for-fha-loans/#comment-13970 My daughter bought her condo 2 years ago to date, her furnace broke down. She bought under a fha loan, is there provisions that require that the furnace should been in working condition for longer then this? My daughter bought her condo 2 years ago to date, her furnace broke down. She bought under a fha loan, is there provisions that require that the furnace should been in working condition for longer then this?

]]> By: Cole http://www.realty4atlanta.com/the-fha-appraisal-which-homes-qualify-for-fha-loans/comment-page-4/#comment-13651 Cole Mon, 21 Nov 2011 01:05:25 +0000 http://www.realty4atlanta.com/the-fha-appraisal-which-homes-qualify-for-fha-loans/#comment-13651 Dan, We currently have an accepted offer on a Fannie Mae home. Sometime between when we made out initial offer and our accepted counter, Fannie had the carpets removed from the home. We planned on replacing the filthy carpets anyway, but now it is being suggested that without them, it will not be eligible for an FHA loan. Now that there is only bare subflooring and concrete, will the home qualify for an FHA loan anymore? If not, what is the likelihood that we could negotiate carpet replacement with Fannie Mae if it is a lender requirement and they removed it after our initial offer? Any input would be appreciated. Thanks so much! Dan,
We currently have an accepted offer on a Fannie Mae home. Sometime between when we made out initial offer and our accepted counter, Fannie had the carpets removed from the home. We planned on replacing the filthy carpets anyway, but now it is being suggested that without them, it will not be eligible for an FHA loan. Now that there is only bare subflooring and concrete, will the home qualify for an FHA loan anymore? If not, what is the likelihood that we could negotiate carpet replacement with Fannie Mae if it is a lender requirement and they removed it after our initial offer? Any input would be appreciated. Thanks so much!

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