Home Buying in Austin>Question Details

kelly, Other/Just Looking in Austin, TX

Options other than FHA Rehab loan?

Asked by kelly, Austin, TX Mon Oct 28, 2013

In this house
http://www.trulia.com/property/3130189732-2608-Princeton-Dr-…
The remarks state that it would be good for a fha rehab loan. I'm looking to purchase my first home but government loans seems like a headache. I'm willing to take time to work on a "fixer-upper" but it also states that the house is being sold AS-IS. Does that mean the price is non-negotiable? I've looked at it in person and I'm concerned it might have foundation issues. I'm not locked in with a realtor but one that i've talked to makes it seem like any foundation issue is a total deal breaker. What do you think just from looking at the listing? Thank you!

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Answers

8
Many homes have foundation "issues". You may offer whatever you like but dont expect seller to agree to really low offers. If the home does have foundation issues and you have them fixed, you will need to disclose that to the next buyer of the home. Fully 1/2 or more of the agents out there may direct you away from a home with known foundation issues. I have to say, given the choice of one with problems nd one without those problems, all other things being equal, take the one with least problems. Wells Fargo has a special program, similar in some ways to the 203k FHA rehab loan. It is not limited to the loan limit of the 203k. It may be a program implemented locally only to Austin. There are special loan officers for this and I have the info for contact if you contact me.
Bruce Adams,Stanberry & Associates REALTORS, Inc. 512-554-2350, man2call@stanberry.com
1 vote Thank Flag Link Tue Oct 29, 2013
There is a lot of information available to a buyer's agent on this property. In fact, the listing states know foundation and plumbing issues. There is other documentation available with regard to the condition of this property.

As for various loan products, it is my opinion to have an experienced lender propose different options. Even with the lender's and Realtor's input, it is ultimately your decision on the loan product.

I would be happy to discuss loan products, foundation issues, and your goals in greater detail without obligation.

Please feel free to contact me anytime.

Steve Nusinow
(512)922-7588
1 vote Thank Flag Link Tue Oct 29, 2013
For those referring to this question in the future, foundation issues are not a deal killer. They certainly create challenges, but most can be fixed as good as new. The home carries a bit of a stigma for a few years afterwards, but once fixed, you should be able to remodel to your satisfaction. 203B loans as they are called (rehab loans) are a bit challenging to work with, but they are pretty common. And lastly, every home is sold "as-is", and that has nothing to do with whether or not the seller will negotiate on price.
0 votes Thank Flag Link Fri Feb 27, 2015
I would start by getting in touch with a reputable mortgage lender, please contact me if you would like a reference.
0 votes Thank Flag Link Thu Feb 26, 2015
Kelly,
When it states AS-IS doesn't mean that the price isn't negotiable, all properties have some room for negotiation, if the Realtor that is representing you can't get you some type of decrease in price, you need one that will... like me. When a house have foundation issues, that is NOT a deal breaker, once again you need a game player.

Your Professional Realtor,
Pamela Johnson GRI,Bold Graduate
HomeCity Real Estate
512-636-4532


"HomeCity your pathway home"
0 votes Thank Flag Link Tue Oct 29, 2013
If you do not yet have a written agreement with a Realtor, I'd be happy to talk to you and give you some options. I will say that most homes are sold "AS-IS", but that has nothing to do with the price and does not mean you can't negotiate even repairs after the initial purchase, Typically during the Option Period. And foundation issues are not necessarily deal breakers, depending on how severe they are, where they are in the home, and in what section of town they are. The greater Austin area is prone to foundation issues, some areas more than others. Buying a house without foundation issues is preferred, but some areas and pockets make that almost impossible as the greater percentage of homes do have or have had issues. Many have lifetime warranties however...

It sounds like you need a good Realtor to guide you through the process and if you'd like to talk to me, I'd be happy to go over my experience and credentials. I happen to be one of the top agents with the #1 company in Austin, Keller Williams Realty, and do not charge anything for my extensive Realtor services. I also have a great team of lenders, inspectors, title people, etc. that I think would be of great benefit to you. I happen to also own a home building company and am a Master Instructor for Keller Williams, and I teach things like Buyer Representation and Negotiations. I do not charge you anything for my services. Please contact me tomorrow anytime after 11 AM and I will be happy to talk with you. Joe
0 votes Thank Flag Link Mon Oct 28, 2013
Everything is negotiable. As-is means they know it is in rough shape. Foundation issues are not desireable to most and generally reduce the long term value. Foundation issues are expensive and usually make more sense for an investor/landlord who is looking to make rent profits. A 2 bed is generally a low value house also. You should probably find a professioanl to trust and go that route (agent). You seem to want to talk yourself into a direction that will get you into a compromised value situation, your resale that is.
0 votes Thank Flag Link Mon Oct 28, 2013
Kelly,
There is no way to know by looking at an online listing. The price is negotiable and beng sold "as is" doesn't mean you wouldn't have the option to negotiate and/or terminate the contract wile in your option period. I'd be happy to meet with so you can interview me an decide if you like to work wth me. You need someone that understands the contract and how to write it in a well thought out plan.
Bill 512-709-6343 text, email or call
0 votes Thank Flag Link Mon Oct 28, 2013
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