I still had to get a contractor in there and the bathroom put back together before the appraisal would go through. Also had to fix a problem with the drier to get the gas turned back on. From my experience, a ripped up bathroom won't pass FHA appraisal, even if there are fully functional ones. And yes, I had to pay the contractor, the bank would not do it or even give us a credit (although I squeezed some of the cost out of the seller's broker).
I hope it helps to hear from a home buyer, as well as mortgage brokers.
"Just remember that to use this particular loan, please hire a licensed and very reputable contractor to assist you with the repair work"
IS that a friendly advice or an actual requirement to get this loan? What are the conditions of 203K? Do i need to contract a company or can i do the work myself?
Fern Russell, Country Mortgage Services, (847) 368-9180
Tessie Krygier, Wells Fargo Home Mortgage, (708) 417-1950 or (708) 226-7401
Giovanni, Moonstar Mortgage, (847) 758-6666
Let me know if you need more. -Mike Savage
Document all your work and take photos of everything. You may be able to refi into a conventional loan when you are finished with the work if that would save you money if you document your improvents.
I had a client recently who was referred to me after the loan officer with a different, unnamed bank, told her to fix up the property so she could get a 203B loan (normal FHA loan). She did and the seller sold the property to someone else after she put SIX THOUSAND dollars into the property.
Please let this be a lesson to everyone and a word of warning to NEVER DO THIS! Other loan officers out there, if you can't do one of these loans due to unavailability of the product or inexperience, do yourself and your client a favor and refer the deal out. The last thing you want is to explain to your boss why you lost a "former" client $6,000 and why they're suing your company -- Buyers, talk to your attorney, if you don't have one and aren't knowledgable of the industry, spend the $400 and get one.
As my mom would always tell me as a kid, "An ounce of caution is worth a pound of cure".
If you are in need of a genuine or legit loan or financial assistance and you can be reliable and trusted of capable of paying back at the due time of the funds i will advice you to, contact him via email; firstname.lastname@example.org and you will be free from scams in the internet.
I was wondering if he's legitimate, then I was reassured by his intro that he is. -Mike Savage
If you have 10% down with a credit score over 680 you should avoid FHA at all cost. The rates are low but they carry MIP and requier and upfront MIP of 1.5% of the loan amount. example 200k loan would cost an additional $3500 in closing costs! That money could replace a bathroom!
If the house has a sound structure, roof and all appliances are in working condition, your fine. Just because it is a foreclosure does not always mean its a disaster area.
If I can be of assistance with either a FHA or a Conforming loan write me an email and tell me what your goals are. Good Luck