From what I understand, if this is lender owned, you could ask the lender to fix the structural damage perhaps before you close, they may fix it. The FHA 203K rehab loan will not lend on structural, just cosmetics. Having the structural engineer come in will help if they give it a clearance. The appraiser is the one that would suggest for a structural engineer to inspect the wall. If the appraiser says nothing, then you can move forward to close without the structural engineer. You can not get money to fix the structural part with the rehab loan, but it would close if it appraises.
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You are correct, the bank is not going to do anything.It's most likely sold "AS IS". To answer your question.Here in Virginia many Listing agents will not on the listing if the home cannot be sold to those who are using Government Financing. Generally, if an appraisers report notes a potential property deficiency or that the home is unsafe to you the buyer or the security of the property could be in jeapordy if the wall is not repaired then...chances are FHA financing would not be allowed.
So, it might be worth ordering an FHA Appraisal on the property . If the appraiser doesn't flag it, and you are fully aware of what you are getting into and can afford the fix, chances are the loan could go through. Just be sure that you know the costs involved before you buy. Ask you Realtor for guidance.
Ask you lender that question...they should be able to shed some light on the subject.
On a conventional loan the underwriter would probably ask for more guidance. Overall determination would be at the discretion of the bank. But keep in mine such a repair could possibly put the loan in jeopardy if it was beyond the ability of the borrower to make.
A structural engineer would be essential in this process but I don't know if it would influence the bank.
The other type of basement wall is actually inward of the foundation usually 2-3 feet away from the foundation and outer wall of the house. This is not directly part of the foundation. It is a retaining wall which keeps the dirt up under the foundation from falling inward onto the basement floor. Severe movement of this type of basement wall will cause settling and movement of the dirt under the foundation, and therefore, eventual damage to the foundation. Repair and/or replacement of the basement retaining walls is not as expensive as foundation repairs, but they do affect the foundation. If you have this type of construction, the inspection will show that the damage is not to the actual foundation which may help you with the loan.
Hate to ruin your day but FHA will probably shoot down any loan on a home with a major structural problem. The lender will not fix it unless it is very high end and they can see a return to them. On a lower end priced home, they will probably sell the property as-is and it will usually be a cash deal so there is no appraisal. That means someone might get a home at a great price but will have to have the money to pay for any necessary repairs. This is one of the probelms we are seeing with the glut of foreclosed homes in the market. Some of them have serious problems and will not qualify for a loan. If you do buy a home with this type of structural problem be sure you have firm quotes, in wrtiting, by a reputable repair company.