Where do I find the basic FHA standards for a home?
July 30, 2010
I have never purchased a home and am presently looking at an exhisting home that needs alot of repairs. The price is right and I plan to use a USDA loan, which requires the home to meet FHA standards. Where do I find them?
Posted by admin under FHA | Comments (2)
First of all, congratulations to you on deciding to go USDA. It is the best option out there and so little used. Your USDA loan person or USDA Field Office should be equipped to help you out.
I recommend you instruct your loan person to use only an FHA appraiser. The appraiser will appraise the property and provide a value based upon updates, upgrades, etc. and they will put an estimated cost figure on those items.
You will need to get a contractor or tradesperson to provide an estimate for the work to bring the property up to what the FHA appraiser deems pertinent.
There are two ways to do this. One you can build that cost into either your loan amount ( where you finance and pay for over time ) or have the seller place one and a half times the estimated repair cost and it will come from the sellers proceeds. That money will be left at title company or attorney’s office or wherever the closing agent is.
Work will need to be completed within 30 days of closing. At some point along the way the appraiser will need to use the phrase ” this property meets minimum FHA standards ” or words similiar to it.
As you probably already know, if you buy the house for $100,000.00 and it appraises for $110,000.00 the 110K can be your loan amount and you can go to closing with no out of pocket money, should you want to do that.
No money down, no mortgage insurance? How can you beat it?
Comment by tampabaycreditdoctor — July 30, 2010 @ 2:45 am
Here is the usda website!
http://www.rurdev.usda.gov/
I also found this section in one of their handbooks that talks about property elgibility, on page 45 of the handbook is a checklist for the property. Hope this helps!
http://www.rurdev.usda.gov/regs/handbook/hb-1-3550/1chap05.pdf
Comment by JD — July 30, 2010 @ 3:17 am