2 Family home

Q: I found a 2-family home listed at $89,900. I have an FHA loan which also needs to include the concession amount of $6,000. The home has missing pipes/broken walls in both bathrooms/missing kitchen sinks/faucets/cabinets in both kitchens and the furnaces are broken. Am I asking for too much if I ask the seller to fix all and pay their asking price? or fix all and add to the price?

A: Sounds like you are pushing the limits with the guidelines for a FHA mortgage. There are ‘caps’ on the amount of concessions the seller can pay & those are set to change again come October. Also, FHA usually does not lend on properties that are inhabitable. Most of the time, the appraiser will make stipulations on repairs that need to be done, usually prior to closing (there are exceptions). Meet with your lender & Real Estate agent to come up with a ‘game plan’ that could actually end up at a closing.Then put together an offer for the seller.

Q: If there is a 100% financing on an FHA loan, do I still have to pay 1% down when signing the P&S? Or would it be at 0 down? Thank you.

A: Unless you have an FHA loan already in the process, you probably wont be able to get 100% financing. The rules & guidelines for FHA are set to change starting next month (September) with all of their products conforming to the new guidelines by October.The VA still will offer 100% financing if you were in the service.So, if you really want 100% financing, get with your lender & apply today (the 100% FHA loans are also known as ‘down payment assistance’ loans – ‘Ameridream is one of them). Oh yea, you will need a house & a seller willing to participate.

A : Yes, I am already a part of one.

Reply : Good job with getting in under the deadline. You should do what is required to comply with the lenders to get your loan processed as quickly as possible. In the event you paid too much in prior to the closing ( referred to as Paid Outside Closing on your closing statement), you should get reimbursed at the time of your closing. Refer to your ‘good faith estimate’ of closing costs your lender supplied to you. That is the best estimate of your costs you will have at this time.