Home Buying in 92407>Question Details

Lafer, Home Buyer in 92407

I am qualified a 105,000 fha loan. am i limited to certain houses with this loan?

Asked by Lafer, 92407 Mon Dec 5, 2011

my agent is saying that she is having a hard time finding houses that meet our needs yet when i search online there are so many houses that show that meet our needs and are available. im a first time home buyer so all of this is new to me so im not really understanding why we are having such a hard time finding a home.

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As long as you are looking at homes price around $105,000, a lot of first time buyers think they have a blank check and can look at homes say in the $150,000 range because they will negotiate. If that is what is going on in your case your Realtor is trying to reel you in. Good luck,
2 votes Thank Flag Link Tue Dec 6, 2011
Hi Lafer,

You are not limited to any type of house (although condo ownership can be a problem with FHA financing) but you are limited to "houses without major problems or safety issue".

A cash buyer can purchase any home.

A 20% down conventional home purchase may require repairs if any major defects are known or discovered by the appraiser. The bank may not lend the money to purchase unless these repairs are done before closing.

With an FHA mortgage, you are required to put a minimum of 3.5% down. When the appraiser goes out to the property they check for repair issues PLUS safety violations. If the house has flaked paint and it was built before 1978 they may require scraping and painting (it could have lead).

The "mortgage required" repairs and safety issues can usually be negotiated with the seller IF the property isn't being sold as-is (foreclosure and short sales are usually as-is).

The differences in financing (cash, 20% down, FHA) can determine negotiation power. A cash buyer has more negotiation power than an FHA buyer. A seller may accept an FHA offer but state they are not going to do any of the FHA required repairs. There are cases where the buyer has been painting their future home in order to satisfy the FHA flaked paint condition.

A work around for repair or safety items is to do an FHA 203k Renovation loan. You borrow the money to purchase the home and on top of that borrow the money needed to repair or upgrade the home. This loan has a higher interest rate and will change your purchasing power.

Hope this is of some help.

Regards,

Joe Finnerty
484-241-1641
Prudential Patt White Real Estate
Lehigh Valley, PA
610-865-0033
2 votes Thank Flag Link Tue Dec 6, 2011
Hi Lafer , No you are not limited to certain houses if you are qualified for an FHA loan,However if you are looking for a condo, townhouse or a home in a PUD planned unit development they must be FHA approved communities in order for you to get FHA financing. As for your price range, there may appear to be many homes in your price range, but perhaps the homes are foreclosures, short sales or distressed properties that are being sold strictly as & in need of rehab or repair. These homes would most likely fail an FHA appraisal inspection . If you are still; having a hard time finding a home you may need to broaden your search to other neighboring towns or refine your needs list.
1 vote Thank Flag Link Tue Dec 6, 2011
The home has to qualify for FHA financing as well as the borrower. In the 92407 area there are probably NOT a lot of homes in your price range and in good condition. Couple that with the still vast investor market and you have strong cash competition. Unless you get really lucky count on submitting many offers and have an agent that is willing to go the distance with you. Don't give up. Persistence is omnipotent! You can do it. Just keep trying. The right home will appear at the right time I can promise you that!! Happy holidays.
Cindy Vedder. Prudential ca. Realty
1 vote Thank Flag Link Mon Dec 5, 2011
You should be able to purchase just about any home, unless it is in complete disrepair with an FHA mortgage. There are criteria that it will have to meet in order to pass an FHA inspection. I am not familiar with your area, so perhaps you should discuss with your agent the specifics of "why" she is having dificulty in finding a suitable home. You should be able to buy short sales, bank owned and traditional resales.
1 vote Thank Flag Link Mon Dec 5, 2011
The properties need to be in good condition. Also if there are association fees the approval price is less. So stay away from fixers. i would also point out that you should be checking the FHA repo list.
0 votes Thank Flag Link Tue May 7, 2013
Absolutely. Some sellers, especially REO banks, will refuse to sell to a buyer with an FHA loan because FHA may require repairs prior to approving a loan on a property. But that doesn't mean you can't work around your particular loan. Just ensure your agent is screening listings for this restriction BEFORE viewing the properties. There's no reason to see a home if it is unavailable to you!

Good luck, and if you need any assistance, call us at: (888) 9-List-It. That's (888) 954-7848.
0 votes Thank Flag Link Thu Jun 14, 2012
There are a lot of beat up homes in San Bernadino. I don't have first hand experience showing homes in that area, but if the kitchen is missing or the property needs a lot of work, the lender is going to require a bunch of repairs to close the loan. Another thing to consider is does your agent know how committed you are to purchasing a home? Many times buyers seem uninterested in actually purchasing and an agent may begin to ignore them. Open up the lines of communication and ask specifically why your agent didn't show you THAT house.

Best of luck...
0 votes Thank Flag Link Thu Mar 1, 2012
Lafer, the answer to your question could be "NO" and "Yes": Here it is. NO as long as the property is listed for about that price or sellers is willing to sell it to you for about that price. And "YES" because the property must be in "livable" Conditions. Meaning the property must be in good condition. It does not need to have everything new but everything must be working and no repairs should needed to be done. If property needs repairs and seller is not willing to do those repairs. Property will not pass FHA guidelines. Therefore your lender will not be able to give you the loan. Good luck and congratulations on the investment of your home.
0 votes Thank Flag Link Thu Mar 1, 2012
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