I am approved for FHA loan for 225,000 but can't find any single family houses that will pass FHA in my area of 92116 or nearby I am open to

Asked by Helen, 92116 Sun Jun 20, 2010

other areas such as lemon grove or national city need at least a 3 bedroom or 2 bedroom with room to expand. can anyone out there help me.

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Matt Puzz, , Phoenix, AZ
Mon Jun 21, 2010
An FHA loan just requires that the property if structurally sound and all the mafor components of the house are "functional" as the appraiser/FHA inspector. I am in Arizona a about 80% of my loans are FHA loans, our company that is a mortgage banker was the 2nd highest originator of FHA loans in Arizona in 2009 next to Wells Fargo and we only have 130 Loan Originators compared with how many Loan Originators at Wells Fargo.
The reason an FHA inspector looks for things that are wrong with the home is for your protection, they do not want you buying a home and within the first 60-90 days have to replace the roof. Hard money lenders have huge up front fees most of the time and will not lend on 95% Loan to Value. Conventional lending will require at least 20% Down payment and a 680 FICO score to avoid Mortgage Insurance and the lower the FICO score and the lower the down payment the HIGHER the Mortgage Insurance Factor. The FHA loan is a great way to go these days in California and the faster most realtors embrace the FHA loan the more home sales you will make, granted there are "money pit" homes out there and you want to stay away from those if you have limited funds anyway. If you have any questions on the FHA mortgage and would like a brief overview of how it works and why it is such a great option right now, I am happy to discuss this with any of you on this site. Besides think of this, what if we are not at the bottom of this housing crisis and home values go down another 10-20% and the money people just sunk into their homes has just vanished, then what??? I qualified many buyers so they could go shopping for homes in 2005, incurring an expense of $50 or so per buyer; when it came time to buy their house they paid cash with their money that they had from selling or refinancing their California home. They were advised to pay cash by the realtor because they would get the offer accepted and they could close faster (the realtor got paid faster, too) now the home is worth 40% of what they bought it for and the realtor is no longer in the business. I can assure you with a professionally written letter by the lender and a 50% down payment, they would have still got the loan and would not been so upside down with their home now. Too bad for them and also too bad that the realtor has left the business.
FHA is a great loan and a valuable tool to use and make more money.

Matt Puzz
Amerifirst Financial
602-410-9333
A Mortgage Banker Lending in AZ, CA, and NM
Web Reference:  http://www.mattpuzz.com
0 votes
The Salas Gr…, Agent, Solana Beach, CA
Mon Jun 21, 2010
Just to clarify. The loan programs I am talking about are not private investors or hard money loans. They are Wells Fargo portfolio programs.

Also, in regards to the last answer. I wanted to clarify about FHA and the "hazardous conditions." Keep in mind that FHA has stricter guidelines, but in no way does it mean that any other loan is less safe loan. If that were the case then more then half the purchases this year would be "hazardous homes." That is because FHA makes up about only 30% to 35% of the purchase loans in California. Just some food for thought ;)
0 votes
Cory La Scala, Agent, San Diego, CA
Mon Jun 21, 2010
Hi Helen,

Jesse's right about a couple of things, as far as the condition of the house you buy. What FHA does, is be sure that you're buying a house that's worth the price, and that there are no hazardous conditions (do you really want hazardous conditions?). A private investor loaning you money, or a 'hard money' loan, will have somewhat higher interest rates, but maybe will allow some undesirable conditions. There are sometimes work-a-rounds for some of these issues that come up with FHA, but even for conventional loans, because even conventional lenders won't lend money on a house with issues that could compromise value. The smaller direct lenders I work with generally know the appraisers, although an appraiser cannot be hand-chosen like they used to be. I've seen fraudulent appraisals when prices were skyrocketing and anyone could get a loan. An independent investor lending you money might not care, but a reputable lending institution will. It's for their benefit (they lend you money on a house worth the money they're giving you) and your benefit (you get a house of value).

Now, there are other loans with similar low down payments that you could possibly use for different types of bank-owned properties, so we can check those out as we see properties that fit the criteria.

If you plan to expand using licensed contractors so the job is done right (electrical, plumbing, structural soundness, etc.), you'll need a permit for the structural changes. If you buy a house now that has unpermitted improvements, it'll be noticed by city officials when it's time to expand. Converted garages often don't count, because it's not really a living area, and you can often convert it back to a garage. If you don't care about permits, you won't be able to formally add the square footage to your home that would give it a higher value when you go to sell in the future. Having permits assures you that the work is done right, and you get to add the square footage and benefit from the higher value.

It's better to be informed before jumping in. The bottom line is, there are lots of other places to look besides 92116 and Lemon Grove or National City, and if it sounds too good to be true, it probably is.
0 votes
The Salas Gr…, Agent, Solana Beach, CA
Mon Jun 21, 2010
Give me a call. I have several options to make your $$ work for you better. I have access to top mortgage banks that will allow a conventional loan with similar down payments. A conventional loan is easier to qualify then an FHA, but usually they require at least 20% down. I can do a loan with much less of a down payment, around 5%. Also, if you still want to go FHA, I have another investor that will allow unpermitted work and is generally more liberal when it comes to the appraisal. Call me and I can explain.

Jesse Salas
Conventional Properties inc
jesse@cpibuyersagent.com
0 votes
Cory La Scala, Agent, San Diego, CA
Sun Jun 20, 2010
Hi Helen,

You're right that's it's not easy to find a detached home in the $225k price range, but it can be done. Definitely you should look in other areas as well as the 92116 zip code. I've helped many buyers in your price range, and sometimes a simple work around will make a home FHA approved. A house has to have certain things in place for it to be considered 'habitable' according to FHA standards, but sometimes those fixes are do-able in escrow. It's not that easy to just go out and find a house for $225k, sure they're out there, but you have to like it, and it has to meet your needs, and you have to submit an offer that looks good to the seller, usually a bank in this price range. Even short sellers need the bank's approval, so your offer has to look good to a bank.

When you're using an FHA loan, most lenders require 45 days or more to close a loan. When you have a seller that wants to close as soon as possible, they may opt for a different buyer, even if the offer price is a little lower. I work a lot with a couple of local direct lenders, not brokers, that regularly close VA & FHA loans in 30 days, making your offer as competitive as anyone else's. Submitting an offer takes strategy these days, or you'll find yourself just submitting offers. Getting the house is what counts.

Give me a call, I'll be happy to work with you to get you into a house.

Thank you Helen,

Cory
619-825-6421 Direct
0 votes
Julian Rodri…, , San Diego, CA
Sun Jun 20, 2010
Hi! Helen.
Finding a home can be quite difficult if your not working with a Realtor, I'm not working several clients at one time, so if you want a Real Estate professional's help, I can be there for you and spend the time to find your home.
My cell/text # (619) 208-6799

Best of luck to you.
0 votes
Matt Puzz, , Phoenix, AZ
Sun Jun 20, 2010
As a lender I would recommend asking what interest rate you have been "approved" for. If the approval was more than 2 weeks ago you should be able to save .25% or more on the interest rate. Just reducing the interest rate or adding a few thousand dollars for a gift and then buying down a discount point may get you to the $235K range and into one of those 12 homes that are being mentioned by the realtors below.

I would gladly talk with you about a strategy to get you that extra $10,000 so you can get that house.

Matt Puzz
Amerifirst Financial
602-410-9333
Lending in AZ, CA, and NM
Web Reference:  http://www.mattpuzz.com
0 votes
Billy Colest…, Agent, San Diego, CA
Sun Jun 20, 2010
Helen,

Good afternoon! I just did a quick search in 92116. Currently there are no active listings in the 92116 zip code under 235k. When I opened the search up to 92115, 91942, and 92123, there are 12 properties that may fit your criteria in a home search.

The good news, in all these areas there are several homes currently under contract. In 92116 specifically there are 12 properties under contract, meaning we may be able to find you a property that comes on the market or before!

If you are not already working with an agent, please give me a call (619-787-4066) so we can meet this week. I would like to discuss with you how I have helped several FHA buyers successfully purchase a home in this market.

You can also email me other questions at Billy@DiscoverSDHomes.com.

Have a great Sunday afternoon

--
Billy Colestock
Colestock & Associates
Century 21 Award
Mission Valley
Cell: 619-787-4066
Fax: 619-471-2040
0 votes
Sven Yorgens…, Other Pro, Oakland, CA
Sun Jun 20, 2010
I found one single family detached in the area that is FHA approved. Give me a call if you are interested in taking a look at it.

-Steve

Steve Creekmore
Keller Williams Realty
(858) 829-2931

http://www.SteveCreekmore.com
Search the Multiple Listing Service FREE 24/7!

California Department of Real Estate # 01865629
Web Reference:  http://wwwSteveCreekmore.com
0 votes
Tony Francoe…, Agent, San Diego, CA
Sun Jun 20, 2010
Helen,
Although it is a challenge there are many homes out there in the low 200's. I have clients currently in the same situation and have been showing them many homes in the Spring Valley and Lemon Grove areas. There are many short sales and you will need to be patient. I would love to help you find a property. Let me know if there is anything I can do to help. You can also search for properties on my website http://www.katieand tony.com and I can show you the properties you are interested in. Have a great day!

Tony Francoeur
Broker Associate
Coldwell Banker La Jolla
Coastaltony@gmail.com
858-688-1177
Web Reference:  http://www.katieandtony.com
0 votes
Yvonne McElf…, Agent, Rancho Bernardo, CA
Sun Jun 20, 2010
Our team will be happy to assist you, call me at 760-525-7787
Web Reference:  http://www.JeffColeGroup.com
0 votes
Joan Wilson, Agent, San Diego, CA
Sun Jun 20, 2010
I would be glad to help you. Email me with your email address and phone number, and I will help you find a great FHA approved home.

It is my goal to have you and your family as clients for life.

Let me know if I can help you in any way!


Joan Wilson (Realtor, SRES, Ecobroker)

Find Your Dream Home:
http://JoanWilson.PrudentialCal.com


California Cool 4 Sale
Prudential California Realty
Direct Phone: 760-757-3468
Fax: 760-946-7894
JoanWilson@prusd.com
License # 01341483
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