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question about FHA


4peoples
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ok me and my husband have found the house we really want, wells fargo has already said that we have been prequalified or preapproved (not sure which one b/c it was a little confusing and I do not remember exactly what she said, it was over the phone if that helps and she told me what receipts to get that was on my credit that she pulled that I have paid for w-2's and paystubs) but anyway,

I believe that this has to do with fha also, she said that now we have to put in the bid and wait

my question is what if there are some minor problems with the place, it has one broken window, a few holes in the sheetrock and some kid wrote on some of the walls with a pen and a marker

does that mean that FHA will not go for it? I believe that it is priced really good so I believe that it will be ok with the loan to value stuff but what about the inperfections

if it will be a problem, how big of a problem will it be? are there any other options can we fix the damage and then fha will do it or what?

also what happens now that we put in our bid after it is accepted or not what is the next step for each of those scenarios?

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FHA appraisals are the TOUGHEST appraisals in use...

If you are going FHA, The black marker can be painted over with paint and a brush - Five minutes and five dollars worth of trouble. The window and the sheetrock must be repaired, again small dollar repairs that shouldn't cost more than $100. These are cosmetic repairs that don't have to pass inspection for the Lobby of a fine restaurant or corporate headquarters, they just require a reasonable repair. None of these should be a problem for the seller.

Most regular appraisers will ticket the window and the holes in the walls anyways...

I would be more concerned about all the other stuff in the house. You wouldn't believe the details these guys look for...

In my area the FHA guys are doornob crazy. I have no idea what the story is but that check out every blanking closet, cabinet and interior doornob and latch with a fine tooth comb. Who knows where this fetish came from, probably some local appraiser lost an obsurd local court case.

If you and the RE agent inspected that property, and all the big stuff looked OK, the detail crap usually isn't a deal killer.

There is no way a homeowner is going to let you fix these little problems, you're not insured and they shouldn't let you do it.

also what happens now that we put in our bid after it is accepted or not what is the next step for each of those scenarios?

You have nothing to discuss or even think about until your receive an answer to your offer.

The seller probably knows all this about FHA loans (or their RE agent does,) and may even fix these deficiencies before the FHA Appraiser gets there. If they are unwilling to deal with FHA appraisers they won't even accept your offer, so you'll know soon enough...

Your RE agent and the Mortage banker will tell you what is next, many times it is laid out in your offer. Usually-

1. Your RE agent must produce evedence to the seller that you have actually applied for a loan for THAT home.

2. Any contigent Home inspection is ordered.

3. The lender orders the Appraisal.

Then the The loan process really begins...

This is hard to do, but don't sweat it ... usually these little details work themselves out...

Good Luck.

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I am not sure about the sherrif's sale yet...but the bank is trying to sell themselves, (I believe). it has been vacant for 2 years and just went on the market the other day, if that helps you at all

if it can not go through fha if they said that we were approved or qualified can we get a non fha mortgage?

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If you are applying for an FHA loan, you will know. In the application process, there are specific FHA forms that must be signed. One of these forms explains that an FHA loan, although sponsored by the Federal Government may not be the best financing that is available to you, the consumer. Another form explains to the consumer that although an FHA inspection will be done, this does not replace the need for an independent inspection. One last familiar form is the "funds to close" FHA worksheet.

If your realtor has done their work right and you are applying for an FHA loan, it should be noted something like "Subject to FHA appraisal conditions (and any real estate contract should have "Subject to home inspection." It's all about protecting yourself. Also, the contract should have wording that allows you to rescind the deal and refund your deposit should the home not pass FHA inspection or any inspection. What if there is some major deficency, like foundation problems, a roof to replace, heating/air conditioning, etc. Get your own inspection too!

Some times there will be a minor deficency that FHA will feel needs to be repaired (the window). There is an opprtunity to repair/replace the window prior to close, or there is the option that the funds to replace the window may be placed in an 'escrow account" to be paid to the contractor after the repair.

Whether or not this is a "deal buster" wil be determined on the banks willingness to part with the money for any repairs.

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  • 2 weeks later...

4peoples,

I purchased a bank foreclosure with an FHA loan about 1.5 years ago. I did several minor repairs myself and paid to have some plumbing problems fixed, before the FHA appraiser came thru. This was a gamble I chose to take, if the appraiser didn't approve I would have lost the money for repairs. But I did have a home inspection done, so I felt pretty comfortable about it.

How old is the building?

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