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Asked by Vanillapuddindessert, Orlando, FL Thu Jan 3, 2013

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Answers

12
Dena Schlutz, Agent, Boulder, CO
Thu Jan 3, 2013
The home needs to be habitable for a conventional loan. If the appraiser notes the roof as a repair needed, the underwriter has the ability to look into it further. This is usually a case by case basis depending on the strength of the buyer, % down payment, and their available reserves to address the problem. If you are stretching your ability to qualify to begin with, it might be an issue.
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Abraham Bidh…, Agent, Orlando, FL
Thu Jan 3, 2013
Hi,

That can vary depending different lenders. I suggest to definitely check with your lender if you have already picked one.

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Kase Ellers, Agent, Orlando, FL
Thu Jan 3, 2013
Hi There -

Is this home for investment purposes or is it a primary residence?

If the house "fails" a roof inspection (meaning its not of acceptable condition that requires replacement) it does NOT mean you can't get financing even with FHA.

It all depends on the appraiser who appraises the home. Typically FHA and conventional appraisers whom are aware of it being a primary tend to look closely at the condition of the roof, house etc. It is not something that is always caught unless there is visible roof damage.

If I was your agent and we had concerns about the condition of the roof passing, I'd highly advise you do the appraisal prior to home inspection to ensure it passes the appraisers requirements.
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Vanillapuddi…, Home Buyer, Orlando, FL
Thu Jan 3, 2013
Thank you to everyone who responded so quickly! i really appreciate all of your input and has helped me make a much needed decision.Again , thank you.
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Alys Esmond, , Orlando, FL
Thu Jan 3, 2013
There is no such thing as "passing" or "failing" a home inspection.

Certain criteria must meet certain standards, such as a roof needing a minimum life expectancy for a home to qualify for FHA financing, but it's not like your inspector will assign a grade to the roof :-)

What can happen with a conventional loan is that the state of repair of the home can impact the as-is value of the home, which will then impact the actual amount of money the lender will give you towards the purchase of the home. Here's an example:

You're approved for an 80% LTV (Loan to Value) Conventional Loan up to a purchase price of $100,000. That means that your lender will loan you $80,000 towards the purchase and you will have to come up with the down-payment of $20,000 (plus your closing costs, of course).

You enter into a contract to purchase a home for $100,000. When the appraisal is performed the appraiser determines that the condition of the roof actually brings the value of the house down to $95,000. Now your lender will only commit to lending you $76,000 (based on that pesky 80% LTV).

There's a number of options you have at this point, but all basically equal to finding that extra $4,000 you now need to close. You can renegotiate the selling price (especially if your contract contained an appraisal contingency), you can ask the seller for a credit, you can ask the seller to fix it, or you can bring that extra $4K to the closing table.

So, the net answer to your question is: No, the roof doesn't have to "pass inspection", but the condition of the roof can effect the value of the home and if you did not take that sufficiently into consideration when negotiating the purchase price it can cause headaches.

Good luck!
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Julie Rosent…, Agent, Jupiter, FL
Thu Jan 3, 2013
Hi, Though usually "yes", the answer in your particular situation depends on all its unique details. I recommend you get a written answer to your question directly from the mortgage processor / underwirting department of the lender who is doing your mortgage., See all listings and get free information at http://www.BUY-SELL-RENT-FLORIDA.com
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Mark LeMenag…, Agent, Lake Nona Orlando, FL
Thu Jan 3, 2013
Thanks for the comic relief. Vanilla Puddin indeed. My favorite as well.

Unless there is obvious damage or wear when the appriaser comes the answer is no, but as noted, if you have concerns about the roof you need to get an inspection.
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Dan Simon, Agent, Charleston, SC
Thu Jan 3, 2013
In the Charleston SC area I have seen insurance companies require that a roof be replaced after closing. A couple of months can go by and the new owner could receive a notice from their carrier stating that the roof must be replaced within a certain time frame (not long) or coverage with be dropped.
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Wayne Collier, Other Pro, Bowling Green, FL
Thu Jan 3, 2013
Hi,

James is right. But even if your lender may or may not require an inspection the insurance company might. It all depends on who is writing it and the age of the home. Roof certifications are common with Citizens Insurance and most companies use the Four Point Inspection process to determine the condition of the Roof,Plumbing ,Electric and HVAC systems. It is always best to have a Home Inspection inspection so you know where you may stand.
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Danielle Sha…, Agent, Cape Coral, FL
Thu Jan 3, 2013
While the loan may not pose a problem, obtaining homeowners insurance probably will if the roof is bad. Talk with your insurance company about that before proceeding.
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Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Thu Jan 3, 2013
=
If its not noted on the appraisal, no, not usually on a convensional.

But it can't be in obvious need of repair of it will be noted.

VA appraisals are the toughest

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James Wexler, Agent, Scottsdale, AZ
Thu Jan 3, 2013
I am not a lender, though only a FHA inspection requires the roof to pass inspection. A conventional loan does not even require an inspection. Though, I strongly recommend you get a home inspection and if the roof is not in good shape, Get the seller to fix it, or walk from the deal.
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