Home Buying in 16508>Question Details

Lee, Home Buyer in Erie, PA

What exactly is an FHA loan??

Asked by Lee, Erie, PA Tue Nov 18, 2008

I have been approved for an FHA loan and my mortgage broker told me I could not buy a fixer-upper, but when I look into FHA loans all I am finding is stuff about fixer-uppers. What exactly are the requirements of a house to pass FHA inspection? My realtor has no real answers and just keeps saying "oh this won't pass" to everything we look at, but never gives me a straight answer as to what will pass. I really want to buy a home, and I have a downpayment ready, but it seems like there is no house in my approved price range that will pass FHA that is also in my target area.

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Answers

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might be time to find a new agent or at least educate the one you have and find a new lender
FHA offers a 203k program that:

1-Streamline which is for non structural work typically cosmetic style and it goes to 35k max.

2-Standard which can be for virtually anything like room additions and structural changes to the house and is for anything which exceeds 35k in repairs. In this program HUD requires to have a HUD consultant which is usually the appraiser who doubles as the consultant.

good luck!
Web Reference: http://ww.rescg.com
0 votes Thank Flag Link Tue Nov 18, 2008
you should find an agent that specializes in fha and that communicates better. If the agent can't express things in a way you can understand now what about when the pressure is higher.
0 votes Thank Flag Link Tue Nov 18, 2008
here is a direct link to the FHA minimum standards, http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4910.… and the main info page about inspectors and regulations http://www.hud.gov/offices/hsg/sfh/insp/inspectr.cfm plan on spending an hour to look it over. FHA.gov doesn't have the inpection info although it should. It just has broken up pages of info.
0 votes Thank Flag Link Tue Nov 18, 2008
http://www.fha.gov see if you can find your answer(s) at that website
0 votes Thank Flag Link Tue Nov 18, 2008
FHA loans are backed by the Federal Housing Administration. They do have more stringent requirements on appraisal ultimately the condition and value of the home. Some examples of items that will not pass are broken windows, no gutters, leaking roof, peeling paint, not functioning furnace or water heater....There are many issues that FHA will not allow. They want to ensure that buyers get a decent home without too much repair needed.
0 votes Thank Flag Link Tue Nov 18, 2008
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