Financing in Palo Alto>Question Details

Hollie, Home Buyer in Tracy, CA

unacceptable property

Asked by Hollie, Tracy, CA Mon Jul 20, 2009

The lender declined our loan approval. It's a conventional loan.

Subject property is in fair condition per appraisal report. Exterior walls are in average minus condition. Interior walls need painting throughout. Carpeting is worn & stained throughout. Some interior doors & front door are damaged. Kitchen granite counters are stained. Dishwasher has been removed from kitchen. Kitchen cabinets are stained & worn.

Can we get loan approval from other lenders?

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Keith Sorem’s answer
The short answer is yes, you can obtain a loan from whomever you wish.
Talk with your Realtor. Based on your statements it sounds like a great value and you should ask other lenders for their options.
0 votes Thank Flag Link Tue Jul 21, 2009
Keith Sorem, Real Estate Pro in Glendale, CA

Sorry to hear about your current loan approval situation. So the lender claims its an unacceptable property due the appraisal report? Is it a short sale or foreclosure? I may be able to help. Feel free to contact me.

0 votes Thank Flag Link Mon Jul 20, 2009
This is a perfect FHA 203K loan....

This loan type allows you to build in the cost of the repairs and improvements and finance it through the loan with no out of pocket cost to you.

Many lenders do not do the 203k loan but we are experts, call or email me and I would be happy to go over it with you in more detail and see if its something that would work for you.

Kyle Hufford
0 votes Thank Flag Link Mon Jul 20, 2009
The appraisal value is over the purchase value of $30k.
0 votes Thank Flag Link Mon Jul 20, 2009
Hi Tracy, I have never (in 10 years in real estate) seen a conventional loan declined because of such minor conditions. Did the property appraise at or above the price that you purchased it? All of what you have mentioned above except the dishwasher are cosmetic repairs. They might be mentioned on an FHA or VA appraisal but shouldn't even show up as predications there. I'd ask some deeper questions of your lender as I suspect there is a value issue, or another issue with your loan. Ask for a copy of that appraisal as you've likely already paid for it and then check with another lender/lenders for further info.
0 votes Thank Flag Link Mon Jul 20, 2009
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