Home Buying in Portland>Question Details

Brooke Frazi…, Home Buyer in Sherwood, OR

I'm interested in a house that needs a RE-HAB loan. There's a second unit that has cracks in it.

Asked by Brooke Frazier, Sherwood, OR Mon Jul 2, 2012

I heard FHA could call this because of it being a safety issue?

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Carla Muss-Jacobs, Principal Broker/Owner ~ Exclusive Buyers Agent ~ ABR, CEBA’s answer
These are the types of things that your Buyer's Agent should be helping you out on. As others have stated, where are the cracks. Is the second unit part of the purchase, part of the house that need sa re-hab loan. A little too vague . . .
0 votes Thank Flag Link Tue Jul 3, 2012
What do you mean by "a second unit has cracks"? Is it a second floor? Or a basement? Get an inspector to figure-out if there are structural issues. I agree with Tom: no structural repairs on a property if 203K is the financing way. I would double check but that's what I know. Maybe it's a good idea to look for a better house in the area? I doubt the one you are interested is the only one.
0 votes Thank Flag Link Mon Jul 2, 2012
I think the easiest way to find out what is there is to do the home inspection and then see what the lender will allow. Again - as seen before -structural is one thing - but cosmetic is totally another. You need to know what it is to be sure!
0 votes Thank Flag Link Mon Jul 2, 2012
You don't say what the cracks are in but a 203K loan does not cover any structural repairs to any home. Thanks, Tom Inglesby
0 votes Thank Flag Link Mon Jul 2, 2012
I am not sure what you mean by " a second unit that has a crack"....is this a house or a multi family property? FHA loans are particular about property condition, but I would not count yourself out of the purchase based on what you don't know for sure, which is exactly what your FHA lender will allow or not allow. My approach is to work with your broker to craft the best offer possible, protecting your interests while reaching your goal. Be prepared to offer up cost of rehab, and a plan for resolving any serious issue. Financing a purchase of this nature can be tricky, but your broker and your lender can help you answer any questions of this nature.
Karla Divine, Principal Broker
Divine NW Realty
503-819-6923
karla@karladivine.com
0 votes Thank Flag Link Mon Jul 2, 2012
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