Q & A Saturday – Does My House Qualify For FHA Financing?

Welcome to our Q & A Saturday video.

In these Q & A Videos we will answer your questions about real estate.  Any real estate related topic from questions about selling your house, buying a house, real estate investor questions, land lording questions, local market questions and many others things are all fair game. 

Today’s question is “Does My House Qualify For FHA Financing?”

FHA HUD Logo - Massachusetts Real Estate

In this video Shaun discusses some of the many requirements for the condition of a property getting an FHA loan.

 

Some of the main points covered in this video are:

1)      What are some major repairs that FHA will almost always require fixing?

  1. None functioning HVAC
  2. Leaking Roof
  3. Peeling Paint in Pre 1978 Houses (Lead issue)
  4. Non-Functional kitchen (Usually missing/damaged Stove)
  5. Bad Drainage (Water in basement, standing water around foundation, bad grading of yard, inadequate drainage from gutters…)

2)      Other repairs that might not get cited, but have and will sometimes

  1. Missing/damaged handrails
  2. Cracked glass in a window (Not a broken or boarded up window)
  3. Damaged or soiled floors (Not to extensive and not a safety/trip hazard)
  4. Damaged walls, like small random holes
  5. Ripped screens
  6. Peeling paint in post 1978 built houses
  7. Minor plumbing issues (Think leaky faucets, busted pipes will be an issue)

3)      Other repairs can always be cited by the appraiser and there is not much you can do about it

 

FHA loans can be a great product for many homebuyers.  That can be especially true in pricey markets like we have in Eastern Massachusetts.  Low down payments, lower interest rates and lower credit qualifications make homes more assessable to people than they would be otherwise.  However it is a government program and that means that it is going to have a lot of Red Tape.  There are many hurdles that need to be overcome to qualify yourself as well that we didn’t get into here.  Qualifying the property is often the EASY part!  If you are buying with an FHA loan or selling to someone getting one expect there to be a lot of things that come up and don’t expect it to close in much under 60 days in most cases.

 

Hope you enjoyed the video and leave any other questions you have about the topic below or any other topics you would like to see covered in future videos.  I encourage anyone that has things they would like to talk about to let me know what they are.  You can always fill out a contact us form here and put Q & A in the subject, just leave a comment with your questions below here, send an email to info@masshomesale.com, or post it on our Facebook page or Twitter account.

 

Resources mentioned in the video and some other useful resources and good articles:

–          FHA Loan overview

–          FHA Homepage on the HUD.gov website

–          Good article on FHA Seller Repairs

–          Out recent video on “Can I Sell a House with a Failed Septic System

 

 

 

(Image Credit: FHA-HUD Logo)

 

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