I highly recommend contacting Stef Adams who is a hardworking and trustworthy renovation loan officer who knows the ins and outs of 203k financing - I have first hand knowledge as I too used her for my 203k loan. I also can recommend a great FHA home inspector in the Cincinnati/NKY area if needed.
Stef Adams office 859-578-3918
my understanding as to why you can not get the combo. the 203k loan requires inspections, disbursments and title updates after the loan has closed. the time frame on the work is longer than the time frame that the OHFA lenders have to deliver the loan to US BANK (master servicer for OHFA )
Also, the 203k typically have higher closing costs and the OHFA program limits what lenders can charge. 203k loans also typically have slightly higher rates than the 203b(standard fha) loans. OHFA sets the rates for the bond money program
With those contraints it' typically an unprofitable loan for a bank to do...
If you need someone to help you with a 203k loan in cincinnati area, contact Brent Zuch at 513-477-3834, He's with Western Ohio Mortgage
should you have any other questions feel free to contact me directly at 513-227-5897
Scott Baker, Realtor
ERA REAL SOLUTIONS
Phil any appraiser doing either a conventional appraisal or goverment insured loan appraisal would have to mention the repair you are talking about in their appraisal report IF they notice the problem. If there was a problem with loan or the home they would have to bare some responsibility subjecting them to licensing & insurance issues. On an FHA loan the underwriter would most probably not approve the loan based on hte appraisal and FHA guidelines.
On a conventional loan the underwriter would probably ask for more guidance. Overall determination would be at the discretion of the bank. But keep in mine such a repair could possibly put the loan in jeopardy if it was beyond the ability of the borrower to make.
A structural engineer would be essential in this process but I don't know if it would influence the bank.... more