04-05-2012 07:04 PM - edited 04-05-2012 07:07 PM
I have been viewing the forum and finally just got worried and have some questions HOPEFULLY someone can answer......
I have a house that I found. It is a forclosure. I love it (Personal Opinion). My broker wants me to get a USDA loan. I am perfectly fine with that. I have a couple problems and because she wont give me a straight answer and seems calm.....
1. It has no hot water heater.
2. It has no heat.
I am curious to know how she is going to get around this......
Thats just problem 1.
I have a 25 period for the loan cotingency. It is already day 9 and I have yet to get my file sent to the underwriters. I am waiting on my rapid rescore to come back, it should be tomorrow.
Is there enough time left? Should I ask for an extension? We are set to close on the 7 of May, but I am worried about having only 14 days left.
HELP ME I HAVE DONE MORE RESEARCH THAN A SCIENCE PROJECT IN 10TH GRADE!
Thanks everyone in advance......
04-06-2012 03:53 AM
I would ask for an extension. Wouldn't shock me if it takes USDA that long to view the property. It's a long process, but worth it in the end. YMMV
04-06-2012 09:46 PM
I am in the first leg of Underwriting with the USDA Loan Process. I placed an offer on my first house in which it was a foreclosure and it fell through because the seller only wanted to pay for 7000 in repairs. Well once the appraisal was through he sited:
The contractors estimates came back to 17000 in repairs, the list price was 78000, but the house only appraised to 88000 these guys are through and strictly follow the FHA guidelines and I lost my $400.00 in appraisal fee. Suffice to say the Seller refused to compromise and I had to walk away from my first house. From my experience most Foreclosures in my area offers AS-Is clause no matter what the loan type. USDA I have found out are very stringent and the house has to be move in ready, the catch is what ever repairs that are found has to be Seller approved and it turned out to be one of my biggest disappointments. I found that if I am going to pay that type of money for a home why not find one in move in condition. I found a lovely updated home and my payments will only amount to $100.00 more per month, My inspection/appraisal came back with only a termite certification letter required no major issues or repairs required. (Make sure the Seller is willing to pay all repairs per your contract and make sure the realtor or the seller Knows who be doing your repairs) It is a great big headache, I am wishing you the best.
04-06-2012 10:02 PM
I first want to thank everyone that has responded, I appreciate it. I am content on this house. It dont matter whats wrong. I got a good deal even if I have 15,000 in repairs. My main focus is getting it. It sold for 150k more two years ago and is worth every penny.
I need the answer to question two so bad. I have now 9 days for underwriters to get the information and etc..... I also want want to know if I need to get on my broker to extend the period needed.....
Thank you so much. I am waiting on Experian to come back with my rescore and that is the only problem. So now im down to Monday......
04-07-2012 09:27 AM
I am not saying not to go forward with the house, what I am saying is that the house has to appraise enough so that you can roll the repairs into the loan, unless the Seller is willing to drop the price to cover the repairs, or you have the money cover the cost. Your loan with USDA will not go to underwriting until the appraisal comes back. Your house has to appraise to the contract amount or above and the loan will not close until all repairs are met to move in condition. You deserve the house of your dreams and anything that wonderful is worth hard work and dertermination, talk with your realtor to see if everything can be done within your timeframe, if not ask for exstention
04-07-2012 12:06 PM
Did you have the house appraised yet? And the cost for repairs estimated? When you say "it has no heat," does this mean it doesn't have heat because it needs a new furnace or because someone stole all the copper pipes? You need to find out or you won't know what your options are...