Home Buying in Locust Valley>Question Details

Brian, Home Buyer in New York, NY

Will a conventional mortgage be approved if the house needs a new roof?

Asked by Brian, New York, NY Tue May 3, 2011

The underwriter for my mortgage has asked for a roof inspection. The roof is at the end of its life and needs to be replaced. I have enough money in bank account to pay for the roof after closing. Will the mortgage be denied because a new roof is needed? Is there anything I can do to get the mortgage approved and cleared to close?

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8
Brian,

We do escrow repair loans on our conventional loans, so YES, this can be done! IF you need additional renovations, we have a host of other products which may be helpful for you. Depending on your and your homes circumstances, I would be glad to recommend the one that best fits your needs.

b
Web Reference: http://www.203kworld.com
0 votes Thank Flag Link Wed May 4, 2011
I had a client in a similar situation. The home inspector said the roof had maybe two to three years left. He had no trouble getting financing but his home insurer refused to insure the roof! It's funny because I've seen roofs on homes that were so bad the tar paper was showing through. Yet THEY get insurance.
0 votes Thank Flag Link Tue May 3, 2011
Consult with your loan officer, he/she can best advise...
0 votes Thank Flag Link Tue May 3, 2011
Should be ok, have seen Bank request you sign a document for a Contractor to do the work within a short period of time after the closing. Best of Luck
0 votes Thank Flag Link Tue May 3, 2011
It is definitely possible that the loan could be denied if the house does need a new roof. I recommend that you contact your mortgage officer and they should be able to tell you. If the house does need a new roof, it is possible that the mortgage company would not have a problem if you paid to have the roof replaced before closing. However, it is always a risk to spend money on a house that does not belong to you yet. I have had buyers pay for all the repairs needed to meet the mortgage requirements if the seller was unwilling or unable to do the repairs. It is not something I recommend since it is a risk. Hope this helps! Sherry Chesnutt
0 votes Thank Flag Link Tue May 3, 2011
if i have the money for the roof why would I chose and FHA203 to borrow the money?
0 votes Thank Flag Link Tue May 3, 2011
It should not be denied based on any inspection unless there are untreated termites. I have never heard of a bank asking for a roof inspection, but I've only been selling homes for a dozen years.
Web Reference: http://GailGladstone.com
0 votes Thank Flag Link Tue May 3, 2011
you really need to ask your lender this question. In my experience, the answer would be no. FHA203 loans are designed to roll the repair costs into the loan. You can put down a larger down payment.
0 votes Thank Flag Link Tue May 3, 2011
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