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Jenna, Home Buyer in Rhode Island

We are obtaining FHA financing on a bank owened property. We were told by the lender that a home inspection

Asked by Jenna, Rhode Island Wed Jun 4, 2008

(because the property is vacant) is required and the home has to meet certain safety standards for the loan to be approved. I am getting ALOT of conflicting info. Anyone have any info/advice on this or been through a similar situation recently??

Help the community by answering this question:


FHA does require certain inspections to be performed. If you are buying a bank owned property you may be able to delay the inspection costs until you have acceptance of your offer from the bank.
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1 vote Thank Flag Link Wed Jun 4, 2008
Some FHA lenders do not like to deal with bank owned properties, because FHA inspected criteries are high sometime they do not past inspection, also some banks that owned the properties will tell you that they will not accept FHA or VA financing. FHA is a great way of financing, however when dealing with bank owned properties, maybe conventional loans maybe the best way to go. Good luck
1 vote Thank Flag Link Wed Jun 4, 2008
This is very typical. After the inspection you can either renegotiate your price, take out a larger loan to cover the costs of repairs, or buy another home. If you take out a loan to cover costs of repairs, you will need to obtain signed contracts from licensed companies. It can be a lot of work getting everything together, so be prepared. Your Realtor should be able to guide you through this and Good luck!
1 vote Thank Flag Link Wed Jun 4, 2008
How many of you are running into situations where the bank (conventional loan) is requiring an inspection and requiring all "unsatisfactory" items on the inspection report be repaired or fixed before a buyer will get loan approval? If so, please share your stories.
0 votes Thank Flag Link Mon Aug 9, 2010
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