FHA loan qualify ?

[Anonymous]

What are FHA requirements on the condition of a property? I'm interested in one that needs some "TLC". Needs all new flooring, bathroom....roof is solid.

[DallasLoanGuy]

has to be livable.

there is a fha 203k loan(rehab loan)

[Anonymous]

thanks Dallas. I had an FHA loan before that required the roof to be replaced before it was approved. The roof, at the time, looked pretty good to me This house was last sold at 210k and is bank owned asking 152K.

[BrianB_The_Loan_Professor]

If the bathroom is in working condition and the other items are usable you can likely get the loan. If it is just cosmetic stuff you should be fine. If it is in the middle of a remodel and someone bailed than you would have to look at the 203K

I am doing a 203k streamline right now for someone and it is not that much more work.

It simply requires that you get bids and a contract for the work to be performed from someone that has references is licensed and bonded. There is a little more papwerwork but the loan still requires just the minimum down payment and allows up to 35k for the work - they do buffer the amount with 10% in case of unforseen issues.

Best part is you dont have to pay for the work out of pocket

Brian

[Anonymous]

Thanks for all the great info!! I have a couple more questions I just thought of. Let me give you the background on the house I'm looking at:

It last sold for 210k and is banked owned. The broker is listing it at 152k. It was built in 1975 and needs upgraded bathrooms(some stuff is ripped out), all new carpet(it's already removed), possible furnace and A/C, old metal windows??--mostly 1970's stuff overall. 2600 sf.  Has a huge inground pool on .6 acres. It is in a great neighborhood. Do you think this property would qualify for a 203K FHA loan?

My scores are 694/681/688 with a DTI of 22%. Should I go with a convential loan of some kind??

Thanks!!!

[BrianB_The_Loan_Professor]

Sounds like a perfect candidate for the 203k streamline - there isnt more than 35k worth of work in what you are describing. I dont know of any conventional programs that offer the cash to fix things or that would accept the property in the condition you have described.

The 203k is the same as a regular thirty year fixed rate loan as far as qualifying. Your scores and DTI are sufficient.

Brian