Home Buying in Tucson>Question Details

William Gord…, Home Buyer in Tucson, AZ

Conventional Loan Requirements

Asked by William Gordon, Tucson, AZ Fri May 18, 2012

I was wondering the loan requirements for a Conventional Loan are.

I have an offer in on a short sale. The previous owners just moved out and took EVERYTHING including appliances (Dishwasher, stove, microwave)

I'm preapproved for an amount 40K over offer. The pre-approval is listed as an investment due to it not being my primary home and closer than 50 miles than my primary. Also i'm required to put 25% down which i have.

My question is my realtor said that banks have become stricter with loan requirements and is unsure if the property would meet the criteria. My loan officer stated the same but could not give a firm yes or no, saying it's up to the appraiser.

Has anyone gone through an issue like this? I mean if they won't give the loan due to no stove, it's not like i can't afford to put a stove or what-have-you in it.


Help the community by answering this question:


It seems crazy, but the previous answers are correct. A loan can be denied or held up for all sorts of reasons. Keep in close contact with your loan officer and see what you can work out. Aren't short sales fun ?

Good luck

1 vote Thank Flag Link Fri May 18, 2012
I agree with Spirit, as usual. I find conventional appraisals more forgiving on missing appliances. FHA not so much. Good luck with the short sale!
1 vote Thank Flag Link Fri May 18, 2012
Both your Realtor & loan officer are right, depends on the appraiser. This is a question for your lender, they house your loan & they know. Believe what they are telling you, see it the bank accepts your short sale offer, & see what the appraiser says.

Good luck.
1 vote Thank Flag Link Fri May 18, 2012
Did the sellers take the appliances out after the home went under contract? Your agent should be contacting the seller's agent to tell them to return the appliances to the home based on the condition of the home when you made the offer on the home.
0 votes Thank Flag Link Sun Jul 15, 2012
Most short sales come with an "as is" conditions addendum, however the contract does say the house needs to be in the same working condition as when the contract was accepted. Check with your lender to see if conventional loans require working appliances on property at closing. I know VA and FHA loans require a working stove, heating and cooling units. Good luck.
0 votes Thank Flag Link Sun Jul 15, 2012
In a non-distressed sale, if the seller tales an appliance which contractually should have stayed with the house, then the seller or the seller's agent (sometimes in conjunction with the Buyer's agent) usually wind up,paying for it. I would have your agent pursue this breach of contract and see what you can work out. You shouldn't have to pay for a stove which was in the contract. Of course the fact that this is a short sale complicates matters.

I (and probably the other agents who answered this question) would appreciate knowing how this all turns out.

Good luck
0 votes Thank Flag Link Fri May 18, 2012
Yes the sales contract called for all appliances to come with property. Along with built in grill, window coverings, lightning fixtures/fans and built in garage storage. Listing agent says items are gone for good (to me this means the previous owners sold them)

Loan is conventional

I don't know if this makes a difference but the sellers bank and the company i am using for the mortgage is the same (Wells fargo)
0 votes Thank Flag Link Fri May 18, 2012
If the appraiser requires the repair as a loan condiition, and the seller can't or won't make the repair, and the seller's lender or your lender won't allow you to make the repair before close of escrow, ask the lender if you can pay for the repair (or appliance installation or whatever) after close of escrow. This is called an escrow hold back. For a few years, lenders and title companies didn't allow them, but I just did one last month.

Suppose your appraiser says someone has to fix the broken window or you can't get a mortgage. The seller and his lender won't fix the window, and the seller's lender (actually, the seller's lender's investor, like Fannie Mae, Freddie Mac or HUD) won't allow you to fix it . You get a bid from a licensed contractor to fix the window. The bid is $200. Ask your lender and the seller's lender and your title company if you can do an escrow hold back. If everyone agrees, you may need to leave 150% of the repair bid ($300) with the title company or your lender to pay the licensed contractor to fix the window after you own the house. If the repair costs $200, you get the extra $100 back.

The title company pays the contractor when the repair is completed. Your lender will probably charge you $50 or so to verify that the repair was done.

Donna Moulton
Tierra Antigua Realty
0 votes Thank Flag Link Fri May 18, 2012
You should ne able to charge a stove at the lowes or something and submit a receipt. If there is a problem closing charge it back. No biggie. Normally no stove required on conventional but everyone can add overlays if they choose.
Jason Coleman
Loan officer
Peoples Mortgage
0 votes Thank Flag Link Fri May 18, 2012
All good answers, and it very much does depend on the type of loan...FHA or conventional.

But another question is, does your purchase contract call for all of those appliances to stay? If so, what is the Seller's agent saying about all this? It doesn't sound likely that the appliances will be returned, but if the contract calls for them to stay, their agent should be having a very direct conversation with his Sellers.

Best of luck.

Jim Wilson
Associate Broker
Realty Executives Tucson Elite
0 votes Thank Flag Link Fri May 18, 2012
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