Can I close on an FHA Mortgage if the utilities are off?
The typical answer is no. All traditional FHA mortgages require that all utilities must be on at the time of the appraisal inspection. It is also required that all related systems are functioning properly at the visit.
However, the FHA 203K Renovation mortgage does not require that utilities be on for the appraisal to be acceptable. With many foreclosed properties, all utilities may not be able to be turned on. This is often due to missing/stolen wiring, copper pipes, HVAC unit. When the utilities are off, the normal 10% Contingency Fee in simply increased to 15% of the repair cost. This then enables you to move forward with your purchase.
When it comes time for your draw, a company, such as Prospect Mortgage, that has an in-house draw department can disburse escrow funds much quicker than most others. On most occasions, you will have your first check in as little as 5 business days. This allows your contractor to get paid much quicker. In turn, that allows the work to be started much quicker as well.
When considering an FHA 203K mortgage in Georgia, be sure to know what all facts to compare. With an FHA 203K mortgage, it's more than just interest rate and closing costs.
Prospect Mortgage is the # 2 volume 203K renovation loan origination lender nationwide, according to HUD data for the 2010 Fiscal Year.