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First time with FHA
- Thread starter OV79
- Start date
Fernando
Elite Member
- Joined
- Nov 7, 2016
- Professional Status
- Certified Residential Appraiser
- State
- California
Some forumites are jerks and not helpful. Don't pay attention to them.
Zoe
Elite Member
- Joined
- Sep 15, 2020
- Professional Status
- Certified General Appraiser
- State
- Tennessee
To be honest it is not helping you sir. I can't think of one reason why it would.
Your in a spider web and trying to get out of it.
sputnam
Elite Member
- Joined
- Apr 24, 2012
- Professional Status
- Certified General Appraiser
- State
- North Carolina
Ah... thank you. I did not know that.
Tom D
Elite Member
- Joined
- May 22, 2015
- Professional Status
- Certified Residential Appraiser
- State
- Pennsylvania
Sorry, what did you say. Oh, some here 'are jerks', but you are not one to say bad things, quoting the saintly king.
In your case, passive aggressive.
Mile High Trout
Elite Member
- Joined
- Feb 13, 2008
- Professional Status
- Certified Residential Appraiser
- State
- Colorado
Bro. Order an appraisal before the lender sends their appraiser. Follow their recommendations for MPS or minimum property standards.
Unless that home is tied to a substantial tract of land, may be better to walk away for a home with;
Less upkeep cost. Lower effective age. Better utility. Less wear and tear. Substantially lower financial impact and routine costs.
Minimum property standards. It's in the handbook linked at the start of this thread.
The appraiser has to make an affirmative statement of this nature for every single FHA appraisal. It is the appraisers responsibility, and is liable to assure there is minimum property standards. If appraisers fail to do so, could mean lawsuits, license revocation. So the appraiser will be critical of details of utility condition.
The heat systems worked adequately and I personally observed them functioning without issue during the appraisal. There was an adequate heat system to heat the entire home. The electrical systems functioned adequately and there were no visible damages or problems with the electric system. (presumably the knob tube is long since updated in a home that old.) The water delivery systems functioned adequately and there was at least one fully functional bathroom and kitchen. (appraiser is required to run water and flush toilets everywhere for FHA). The property has either a functional sewer system, or an apparently functional septic system. (depending on your county and city, mandatory septic system inspections may be a condition imposed upon the sale by your municipality in addition to lender imposed MPS requirements.) The appraiser must make a statement the attic was insulated and dry, and report any obvious defects with the roof and gutter system.
And it's going to be similar for any type of loan out there. Minimum standards of livability and habitability are the core requirements for insurability. Mortgage lenders have insured loans. That's why they will not loan on homes which do not meet basic habitability. Call an appraiser, call a home inspector. Call your county state or city people to see if there is renovation programs for old homes or subsidy programs you may qualify for.
This is why people should have wills and arrangements. What's the deal with a state imposed sale? 1880!?!?!? Unless you're a construction expert or Bob Villa, I mean for real. That's a lot to take on. You'll need excellent credit just to afford acceptable remodeling. Old homes really can have problems which are excessively costly to deal with. Walls can fall off, floors can give way, foundations can buckle, you can get shocked, asbestos may be present, bricks turn into sand, septic systems fail and you know what happens then.
GD state people, their taxes, corrupt medical and their excess costs. My uncle passed away in a nursing home recently. They were charging him $9k a month.
Truth is the guy should never have rented to own that long. Needs a credit score miracle.
Unless that home is tied to a substantial tract of land, may be better to walk away for a home with;
Less upkeep cost. Lower effective age. Better utility. Less wear and tear. Substantially lower financial impact and routine costs.
Minimum property standards. It's in the handbook linked at the start of this thread.
The appraiser has to make an affirmative statement of this nature for every single FHA appraisal. It is the appraisers responsibility, and is liable to assure there is minimum property standards. If appraisers fail to do so, could mean lawsuits, license revocation. So the appraiser will be critical of details of utility condition.
The heat systems worked adequately and I personally observed them functioning without issue during the appraisal. There was an adequate heat system to heat the entire home. The electrical systems functioned adequately and there were no visible damages or problems with the electric system. (presumably the knob tube is long since updated in a home that old.) The water delivery systems functioned adequately and there was at least one fully functional bathroom and kitchen. (appraiser is required to run water and flush toilets everywhere for FHA). The property has either a functional sewer system, or an apparently functional septic system. (depending on your county and city, mandatory septic system inspections may be a condition imposed upon the sale by your municipality in addition to lender imposed MPS requirements.) The appraiser must make a statement the attic was insulated and dry, and report any obvious defects with the roof and gutter system.
And it's going to be similar for any type of loan out there. Minimum standards of livability and habitability are the core requirements for insurability. Mortgage lenders have insured loans. That's why they will not loan on homes which do not meet basic habitability. Call an appraiser, call a home inspector. Call your county state or city people to see if there is renovation programs for old homes or subsidy programs you may qualify for.
This is why people should have wills and arrangements. What's the deal with a state imposed sale? 1880!?!?!? Unless you're a construction expert or Bob Villa, I mean for real. That's a lot to take on. You'll need excellent credit just to afford acceptable remodeling. Old homes really can have problems which are excessively costly to deal with. Walls can fall off, floors can give way, foundations can buckle, you can get shocked, asbestos may be present, bricks turn into sand, septic systems fail and you know what happens then.
GD state people, their taxes, corrupt medical and their excess costs. My uncle passed away in a nursing home recently. They were charging him $9k a month.
Truth is the guy should never have rented to own that long. Needs a credit score miracle.
Mile High Trout
Elite Member
- Joined
- Feb 13, 2008
- Professional Status
- Certified Residential Appraiser
- State
- Colorado
One presumes it all worked out well in the end. Or it didn't. Should have captured an address and more clearly defined the purchase amount relative to market value.
We'll just have to guess at it all. Sounds like a minimum purchase price of the remaining loan amount. Probably from a reverse or who knows. Those are the relevant questions to help people out which are just as important as MPS considerations. Because if there is equity in the home and it's not overly depreciated... OP had attachments for value in use, memories, all of that. The best advice any appraiser can give independent people seeking advice is to help them identify if a purchase is financially beneficial or if alternative choices may be safer plays.
I did an 1890's a few months back in a super rural location. Electric wires hanging everywhere. Lean to's falling over. There was no insulation in the mud room, someone removed the wood stove. The last people probably went broke spending a fortune installing an all new modern heat system. A quick call to the city revealed that there were hidden costs of thousands of dollars in future commitment as the septic system would no longer be grandfathered in, sooner than later, due to increased area development density. You never know until you make that call.
We'll just have to guess at it all. Sounds like a minimum purchase price of the remaining loan amount. Probably from a reverse or who knows. Those are the relevant questions to help people out which are just as important as MPS considerations. Because if there is equity in the home and it's not overly depreciated... OP had attachments for value in use, memories, all of that. The best advice any appraiser can give independent people seeking advice is to help them identify if a purchase is financially beneficial or if alternative choices may be safer plays.
I did an 1890's a few months back in a super rural location. Electric wires hanging everywhere. Lean to's falling over. There was no insulation in the mud room, someone removed the wood stove. The last people probably went broke spending a fortune installing an all new modern heat system. A quick call to the city revealed that there were hidden costs of thousands of dollars in future commitment as the septic system would no longer be grandfathered in, sooner than later, due to increased area development density. You never know until you make that call.
Tom D
Elite Member
- Joined
- May 22, 2015
- Professional Status
- Certified Residential Appraiser
- State
- Pennsylvania
Fix the house. Unfortunately, you should have never started this without having all the money to do a good total remod. Now you are probable doing it piecemeal, will run out of money and lose everything.
I'm assuming you started this without talking to anyone. First and last mistake. If you have the money, just do everything. Unfortunately being your 1st house, you don't understand what doing everything means. I would have told you to not do this house, as the 1st one.
You're asking these questions now, is like a person not seeing the deep hole they are about to fall into. I speak from being a fix & flipper person.
There is a good movie, comedy, about a couple buying a fixer upper. The name of that movie is 'The Money Pit'.