Home > Uncategorized > Question of the day: Can I purchase a home that is in need of repairs?

Question of the day: Can I purchase a home that is in need of repairs?


Q:  Can I purchase a home that is in need of repairs?

Well, Yes and No.

The No… The loan will require a property appraisal which determines the property condition and value for the lender.  The appraiser will confirm for the lender that the home is in LIVABLE condition.  The appraiser will ensure that if you were to default, the lender would not have to instantly put money into the home to re-sell it.   Typically, I tell my clients to wear their critical hat while previewing properties.  IF they are not sure if an item is an issue to the appraisal, it probably is. 

Here is a general guide.  The home needs to have flooring, A/C and heating, no health and safety issues (exposed wires, broken windows) and an acceptable roof.   All the plumbing and electrical need to be operational (which will include the pool if the properties has one)  

The appliances do NOT have to be installed as long as they are items that can be pushed into place and plugged in.  If they are installed items (stove top, built in refrigerator, etc) they need to be in place at the time of inspection.

The Yes… There is a government FHA loan called a 203K which does allow for some repairs to be built into the loan.  There are very specific guidelines as to what is allowed to be included and there are only certain lenders who offer the product.  Ask your loan officer about the details to determine if it is an option for you.

Having a dream is good, owning one is better!

Leslie Pelletiere, Owner

First Class Financial Services, proudly mortgage lending since 1999!

602.294.9288(O)

602.294.9830(F)

http://www.fcfs.net

MB#0902810

NMLS #162494

AZDFI Loan Officer # LO-0911453

Oh by the way, I am never too busy for your mortgage referral!

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