Home Selling in East Akron>Question Details

Jason Braddo…, Real Estate Pro in 44266

I have a client where we just got the accepted purchase agreement. The house doesn't have plumbing and needs

Asked by Jason Braddock, 44266 Fri Jun 27, 2008

lots of work. The house is in Akron and the agreement is for $23,500 being sold as-is. His lender just informed me that he is going FHA. What are the conditions of the house that an FHA appraiser looks for in a house?

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Jason, FHA will never lend on this house (how's that saying go.... never say never), except for an FHA 203k rehab loan. FHA's traditional, 3% down loan requires the home be in move in condition and a special FHA appraisal is required. So the property would only qualify for a FHA 203k loan which is meant for properties requiring renovation. They cost a lot more and take a long time to process but they are an option. Best of luck.
Web Reference: http://www.curtdarragh.com
2 votes Thank Flag Link Fri Jun 27, 2008
Lending answer:

Curt is spot on.

Here is a link to HUD with an overview of FHA 203(k) insured loans
1 vote Thank Flag Link Fri Jun 27, 2008
Jason - Curt is right with what he said. If you want to know what FHA appraiser look for you can read the Valuation Protocol part of the HUD Handbook for appraisers - here is a link:
http://www.hud.gov/offices/adm/hudclips/handbooks/hsgh/4150.…
1 vote Thank Flag Link Fri Jun 27, 2008
Freedom Mortgage (National Lender) offers the FHA 203K loan. This loan is designed to proved the buyer with the Financing for both the Purchase and Repairs of the home, based on the After-Improved Value. The program has become quite Streamlined over the years to make it simpler to both Qualify and Get closed. The days of Long drawn out processing are mostly behind you, with a lender who understands this program.
0 votes Thank Flag Link Tue Jul 15, 2008
Wells Fargo has a 203K Renovation Loan. It's a fabulous product and has helped many buyers get into homes that otherwise would not be able to close. What's nice about this loan is that the repairs don't need to be done before closing. One hitch, though, is that you need to submit exactly what will need to be done, for how much, and who will be the professional doing the work. The work can not be done by the buyers (unless they are licensed contractors within that specialty perhaps). Still a great way to roll renovations cost into a mortgage and a difficult transaction closed.
0 votes Thank Flag Link Sun Jun 29, 2008
Try a FHA 203K Plan. Only way this will fly!
0 votes Thank Flag Link Sat Jun 28, 2008
You can't sell it FHA with plumbing issues. If the seller won't fix it it will not close. The water will need to be on before the appraisal can be done. If there is no plumbing you are wasting your time.
0 votes Thank Flag Link Fri Jun 27, 2008
He is going to need to get approved for the FHA 203k Rehab Loan
0 votes Thank Flag Link Fri Jun 27, 2008
I'm pretty sure that plumbing is a must. FHA appraisals aren't as tough as they use to be, but I htink I was recently told that plumbing is a must. I will check with my in-house lender and see what she says. Will also check to see if there is an FHA renovation-type loan that might work for him. I'll write more later.
0 votes Thank Flag Link Fri Jun 27, 2008
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