FHA Septic & Well Appraiser Lawsuit

[chad hampton]

Why would FHA lend on a property that is not a primary residence? Seems like we’ve completely gotten away from what the FHA mission is.

 

[Carnivore]

Why would FHA lend on a property that is not a primary residence? Seems like we’ve completely gotten away from what the FHA mission is.

https://www.investopedia.com/ask/an...cannot be used to,the other units for income.

The Bottom Line​

An FHA loan must be used to purchase a primary residence. It cannot be used to finance a second home, a rental home, a vacation home, or an investment property. That said, there are some exceptions. You can use an FHA loan to purchase up to a four-unit dwelling, as long as you live in one unit as your primary residence. Then you can rent out the other units for income. You can also rent out rooms in a single-family home if you are unemployed because of being incapacitated.

 

[Tiffany Gibbons]

I am sure they are as well because the bank just sued the appraiser so I will leave you to defend negligence amongst yourselves.

You could at least put a snip of the title of the lawsuit "Low Down Mortgage and Cut Rate AMC Vs. Crappy Appraiser, Houston Heloise" for negligence and rescind the names involved, so we can see it is real. It's all going to be public anyway when it is on a docket. Why haven't you gone to a news agency to tell your story? Just curious.

 

[BRCJR]

delete

 

[Elliott]

I am sure they are as well because the bank just sued the appraiser so I will leave you to defend negligence amongst yourselves.

As my mother would tell me, when I was complaining, "You would complain if you were hung with a new rope."

You have asked this forum about your situation. I'd say half the appraisers here have thrown your appraiser under the bus. What is said here, will not make any difference in your case. Most of us have seen situations similar to yours and we can guess accurately what the outcome will be. It is actually about 'agency.' We can't make your problem go away, even if you think the appraiser should be hung by his thumbs.

 

[Tiffany Gibbons]

https://www.investopedia.com/ask/an...cannot be used to,the other units for income.

The Bottom Line​

An FHA loan must be used to purchase a primary residence. It cannot be used to finance a second home, a rental home, a vacation home, or an investment property. That said, there are some exceptions. You can use an FHA loan to purchase up to a four-unit dwelling, as long as you live in one unit as your primary residence. Then you can rent out the other units for income. You can also rent out rooms in a single-family home if you are unemployed because of being incapacitated.

But yet FHA allows a SFR to be sold with FHA financing after 90 days. So many people move out of a primary residence every 90 days, lol. I see realtor-investors starting out use an FHA loan to purchase investment property, throw in some builder grade granite, luxury vinyl plank flooring, and stainless steel. They're not getting 203K loans. The house just needs "refreshing". It'll say "will not go FHA due to 90 day rule" in MLS. Nobody checks.

 

[Elliott]

But yet FHA allows a SFR to be sold with FHA financing after 90 days. So many people move out of a primary residence every 90 days, lol. I see realtor-investors starting out use an FHA loan to purchase investment property, throw in some builder grade granite, luxury vinyl plank flooring, and stainless steel. They're not getting 203K loans. The house just needs "refreshing". It'll say "will not go FHA due to 90 day rule" in MLS. Nobody checks.

A few years after I started doing FHAs, I appraised a small, older house, across from a bank, in a commercial zone. Purchased as, 'owner occupied.' It quickly became a office for a CPA. I doubt it was ever occupied. I mentioned it to the regional Chief Appraiser with FHA, since I thought FHA was intended to be an owner occupied residential mortgage program. I got a call back, "Yeah, that can happen, not your problem."

 

[Fernando]

I just finished watching an episode of Unsellable Homes.
The ladies in the show took this assignment and found out the septic tank is inadequate.
Alternative is to connect to the sewer line and it will cost $85,000.
Most likely they will lose money in this flip.
These ladies have learn their lesson that issues with septic can be costly. Very costly.