While certainly not all inclusive, some of the requirements that come to mind right away
-- No broken windows to the outside
-- Doors to the outside must work and lock properly
-- No wall holes (interior nor exterior)
-- There must be a working heating system supplying the entire property
-- Water supply must have access to a heat source
-- No safety hazards (protruding nails, loose deck planks, etc.)
-- No exposed electrical outlets (outlet and switches must be covered by wall plates)
-- There must be adequate attic insulation
Should you proceed, please be sure that your offer includes a finance contingency, advising the seller that you will proceed with the the property purchase "IF" financing can be obtained within a certain time period. .
Appraisers are the lender's objective eyes with regard to property conditions and we are fortunate to have Hank Miller, a broker and appraiser, as a major contributor on this board. He'll be a great resource for you.
I hope that helps.
Brokers Associate, Certified Affordable Housing Counselor, Certified Distressed Property Expert, Lawrenceville REALTORÂ®
Keller Williams Realty Atlanta Partners
As one of the largest direct lenders in the country, Prospect Mortgage offers one of the largest selections of loan programs available. In addition to the standard conventional, FHA, VA, USDA, and Jumbo, we also offer a wide range on Renovation loan programs. Our Renovation programs include FHA 203K (Streamline & Consultant versions), HomePath Renovation, and HomeStyle Renovation.
For the FHA 203K program, some lenders only offer the Streamline FHA 203K. That does not give you any options should you encounter the need for the Consultant version for structural repairs or if you are looking for renovations in excess of the Streamlineâ€™s $35,000 limitation. Working with a direct lender who offers bother the Streamline and Consultant versions is very important.
For HUDâ€™s Fiscal Year ending 09/30/12, Prospect Mortgage was the 2nd largest volume FHA 203K lender in both the country and the Metro Atlanta market. At Prospect Mortgage, we have a dedicated operations center that only handles our renovation mortgages.
Selecting a loan officer that knows the program inside and out is the key. If your loan officer is not experienced in closing a lot of these types of mortgages, then it will be a very challenging experience for you. Allow an average of 45-60 days for your 203K closing. Prepared buyers are often able to close sooner than that. Some have closed in under 30 days when they are very prepared.
All renovation work will need to be completed by a licensed and insured contractor. I have heard that some lenders may require the use of certain contractors. At Prospect Mortgage, you are free to use any contractor that you wish that meets the minimum requirements as we do not maintain any type of approved contractor list or provide contractor recommendations.
Other than for appliances in certain situations, you may not use any of the big box retailers (i.e. Best Buy, Home Depot, Loweâ€™s, etc). This is because they will not sign any of the HUD required 203K contractor forms.
Use of a HUD Consultant is required on the Consultant FHA 203K and highly suggested on the Streamline version.
Getting Pre-Qualified is the only way for you to find out your options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyleÂ® Renovation | VA | USDA | GA Dream | Jumbo Financing
Some Lenders have requirements as to Heath & Safety.
Some Lenders will not lend if the Appraisal notes a lot o work needed, which lowers the Appraised value.
But some Lenders have special loans that will give you money to re-hab the place first.
You probably should talk to some Mortgage Officers before you go any further; particularly if you have already found a place and want to make an offer on it.
Good luck and may God bless
Just read Rodney Mason's reply. He probably knows more about it than any Realtor.