Financing in Pittsburgh>Question Details

Michael Thom…, Home Owner in Pittsburgh, PA

are there any listings of what would be problems that would cause a fha home loan loan to be refused ?

Asked by Michael Thomas, Pittsburgh, PA Sat Aug 13, 2011

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http://www.fha.com/fha_loan_requirements.cfm

Hi Michael,

This should be right inline for what you're looking for. If you have any questions on a specific case shoot me an email and I'll be glad to help.
0 votes Thank Flag Link Sat Aug 13, 2011
Yes. Not all homes can be financed through the FHA. Condition is a factor but repairs can be made. I just handeled the sale of an REO (bank foreclosure) property where among other things there was a 3.5 foot round hole in the main bathroom tub surround wall where the wall had rotted and the tile (and drywall) had fallen. The FHA did not require this condition be repaired. However they did require a small handrail be installed at the four exterior steps, a small patch be made to one of the garage doors and a little painting where there was peeling paint on an exterior door. All relatively inexpensive, easy modifications.

However there are some things that FHA will not consider such as something that may be far out of the norm for the area that the home is located in. Also proximity to things like commercial gasoline storage tanks, zoning may be an issue, and condominium associations that may be insolvent or not meet certain guidelines for ownership/occupancy, etc. may not be acceptable.

You probably will get a lot of responses to your question identifying such conditions that are not acceptable but most homes are able to get FHA financing. In this market with tighter credit restrictions and so many Buyers having little money to purchase FHA is a very, very popular method so if for some reason a property will not go FHA the buyer pool is limited.
0 votes Thank Flag Link Sat Aug 13, 2011
Yes of course. A few are below. It is the judgement of the appraiser.
0 votes Thank Flag Link Sat Aug 13, 2011
Peeling paint is a big one, if you have it you need to scrape and paint. Others are broken windows, structural issues with walls either in the house or in any outbuildings like sheds or garages, loose or missing railings, lack of attic access panel and of course any major component that doesn't work. That should get you started. Hope it helps.
0 votes Thank Flag Link Sat Aug 13, 2011
Pealing paint, no hand rails, and overall poor condition, will cause the FHA to denie a home. Hope this helps.
0 votes Thank Flag Link Sat Aug 13, 2011
If a property is in poor condition and requires repairs, the FHA appraiser will require those repairs to be done prior to closing. But even with that, FHA also offers a program, the 203k, that allows a buyer to borrow money to purchase a home and fix it up, all in one loan.
0 votes Thank Flag Link Sat Aug 13, 2011
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