Home > Blogs > Florida > Okaloosa County > Destin > Repair Costs CAN Be Included in FHA Loans

Myke Triebold, GRI, LMC

Certified Military Specialist

By Myke Triebold | Agent in Destin, FL

Repair Costs CAN Be Included in FHA Loans

When you want to purchase a home with an FHA guaranteed home loan, the property you want to buy must be appraised to determine its eligibility for the loan.

A home that does not meet FHA minimum property requirements may not necessarily be ruled out for an FHA loan–an appraiser may note certain corrections that should be made to bring the home up to standard. In such cases, the loan may be approved contingent on those corrections being made.

“Repairs and improvements may be added to the sales price before calculating the mortgage amount when the repairs and improvements are

–required by the appraiser as essential for property eligibility, and

–paid by the borrower, and

–sales contract or addendum identifies the borrower as responsible for payment, and completion of the repairs.”

The repair and improvement amount that may be added to the sales price before calculating the maximum mortgage amount is the lowest of the

–amount that the value of the property exceeds the sales price

–appraiser’s estimate of repairs and improvements, or

–amount of the contractor’s bid, if available.”

Myke Triebold www.DestinHomeRealty.com MykeSaysSold@aol.com

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer