You can’t buy property with FHA financing to use it as vacation home or investment property. Government (Federal Housing Administration) insures loan for lender, because lender is taking great risk giving you loan with only 3.5% down payment coming from you. So this loan can be used only to purchase home you will be living in.
And if there is any indication based on contract or evaluation, that home is not safe and/or ready to be lived in (that is what underwriter decides), you will not be able to purchase property without repairs. And sometimes those could be visible issues (like broken and boarded up window or electric wires sticking out), but it could be also very minor thing. For example: I represented FHA buyer in purchase of property. This property featured laminate flooring and in one spot, floor buckled up (one of those things where installer pushes panels to tight without leaving space by the edge). Also in one of the bathrooms, in sink there was water standing (clogged drain). Not a big deal, right? Wrong! As far as underwriter was concerned, buckled floor was safety issue (tripping hazard) and water in sink was health hazard. So, please do not let anybody tell you that times changed and FHA is less strict now. That could be true (like lack of appliances is not necessarily deal breaker), but you still can’t buy “fixer upper” with regular FHA loan. Pay attention to details when looking at houses and if not sure, ask your lender.
Call Anna Chroscicki at 772-485-4188
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