I'm sorry you didn't receive the call back from the company rep you called but if you have any questions about one of these loans now or in the future, I'm local and depending where you live, my office may not be a very long drive away.
I hope your needs have been met but if they're not, reach out and we'll get you pointed in the right direction.
NEVER pay money to repair a property prior to you actually owning it!
A "normal" FHA loan is called an FHA 203(b). This type of mortgage loan requires that all noted safety hazzards be corrected prior to you owning the home. However, you can always use an FHA 203(k) loan which allows you to purchase the property in its current AS-IS condition and include in your mortgage the cost to rehab/improve the property. The rehab/improvements are actually done AFTER you own the home. There are 2 versions of the FHA 203(k) loan - Standard/Rehab and the Streamline. We will show you where you can obtain for FREE all of the FHA 203(k) lenders in your area. So, call us and make certain you have internet access when you do.
Contractor Directory for the FHA 203(k) loan program
I'll try answering a few things that were raised in your answers.
My wife and I have been searching all day for someone that offers 203k loans. We have only found one and it was Wells Fargo. I left a message but have not heard back yet.
I did asked the loan officer I am currently preapproved with if there was any way to escrow the repairs so that I could do them after closeing. He said absolutly not, It has to be fixed before closing. So thats out for now until I can ask some other lenders.
This is a wonderful house we have been looking at for some time now just waiting for it to go on sale. I would be getting a great deal on it even if I have to fix the problems.
I had a plumber come out and look at it today. It needs a sump pump installed. It never had one. The reason he said was because it sit on top of a GIANT hill so there wasnt much water to begin with. But he said installing a sump pump would be perfect to remove the water. He estimated this around $500.
I did have a great company come out and do a full estimate on the mold removal. Thats how I know it will be 8k to gut the intire basement and get rid of the mold.
I own my current home. So I want to move into the new house then sell my old one and pay off the loan. My wife and I have great credit. I am hopeing this will be some kind of asset to us during this process.
The 203K Streamline is in essence a renovation loan offered through FHA, however, the monies are held in escrow and the work is completely with 90 days AFTER the sale of the home.
I would assume they want the mold repair made before closing because mold is considered a health risk. And with this issue, you could be at a crossroads. Unless you can get around the loan requirement for the timing of the repair, the only way to proceed is to have the seller make the repair out of their funds. And I realize that may not be possible, in which case, we have a stalemate.
Talk this through with an FHA/203K loan specialist to see if they have any ideas.
Better Homes & Gardens Real Estate Metro Brokers
The 203k would be a good way to go, ask you loan officer for guidance. they should be able to inform you of you ooptions. th eother option is to ask if you can put the 8k in escrow, so when you close the bank knows that money is there to complete the mold.
Also you didnt state anything about the price you are paying, hopfully you are getting a good enough deal to make it worth while. The mold shoudl have been tested by an expert as well as teh other parts of teh house to make sure the spores are not through out the house,
Good luck with your purchase
Please see my blog with more great tips and advice on buying a short sale.