FHA Property Qualifications

[Anonymous]

Ok... so this will be my Husband and I's first home. We have been approved for and FHA loan for 135,000. We like a house that is 119,000 but appraised and foreclosed on at 170,000. I have heard that if there is peeling paint on the outside or the gutters do not work, that they will not give you the FHA loan. Is this true? Also, we would like to borrow more than the house is worth, up to the 135,000 to make some immediate repairs. Is this possible? I have heard horror stories about this and just would like some feedback. Thank you very much!!!!

[DallasLoanGuy]

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KsMomma wrote:
Ok... so this will be my Husband and I's first home. We have been approved for and FHA loan for 135,000. We like a house that is 119,000 but appraised and foreclosed on at 170,000. I have heard that if there is peeling paint on the outside or the gutters do not work, that they will not give you the FHA loan. Is this true? if the peeling paint exposes the wood underneath to the elements, then it would have to be fixed.  Also, we would like to borrow more than the house is worth, up to the 135,000 to make some immediate repairs. Is this possible? fha 203k loan will allow for this. you need to find a loan officer that can do them. I have heard horror stories about this and just would like some feedback. Thank you very much!!!!

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[Anonymous]

Ok, so the house has chunks of wood missing from the edging on house. Like someone took a ball bat and made notches in the wood. The paint was not peeling. I guess I am asking what specific things or where can I find the answers to the questions of what will hold us up on a house like this. Is it windows, a/c? What types of things. Also, the extra money, will they stipulate what we need to spend the money on and make us do it? Will it be a separate loan? Sorry for all the questions.. I just want to make sure we can do this before we get too deep. Thank you again

[Anonymous]

I know you have to have contractors come in and do estimates and it takes longer to do the loan. I was going to do the same thing but decided it would be cheaper for me to do the repairs myself rather than add it in to my loan and pay interest etc. to pay the contractors. I think you just add it into the loan. My house had some hanging wires from a fan that got removed, chipping paint, exposed drywall and mine passed.