Loans Free Payday Loans

Question: Home loan help. what can i use?

(Posted by: BrokenBell on 2012-01-27 11:00:12)

I am interested in buying a foreclosed house owned by Bank of America. The listing agent is totally incompetent and I have already started the process to report her to the local Realtor ethics board for her actions. From what she said (I don't know what is true or not) that because of the condition of the home it ONLY qualifies for a conventional loan and then refuses to even show the house unless we have a prequalification letter. Well after getting the run around from Bank of America, the lending agent tells me that all the repairs would have to be made before i could close with a conventional loan. TO top it all off Bank of America could tell me nothing on why I could only use a conventional loan with this house even though it is their property. I was under the impression that FHA loans were good if you were going to have to fix up a house I also thought my husband qualified for a VA loan, Bank of America told me he had to have been a reservist for 6 years, even though he served a tour in Iraq. (this is not a very big deal since he hits his six year mark at the first of April.) If I can't use the first two because the house needs work WHY in the devil do I have to get a conventional loan even if repairs are going to have to be done before I can get it. Bank of America is not going to fix it. I want to fix this house because from what we can see it is all things we can do our selves. I am severely confused and becoming very angry in the whole process. Here is what we do know about the house. 21 years ago my parents almost bought the house and it was selling for almost 100, 000, there are homes in the area going for 125, 000 and up and they are much smaller than this one. They are asking a lot less than that. 21 years ago it was a super nice house and in good shape It has gotten a new roof in the past 3 years The last owner died leaving it vacant for several years The exterior is in BAD need of paint The out building needs the floor jacked up (but this is an old carriage house/ kitchen and is not going to have any affect on the living space) From the outside most damage is minimal and can be fixed over one weekend with all my family's help. (other than the painting) We were told there is some water damage , we figure it most likely from before the new roof was put on, but we were not told much more other that "there is water damage ". We have also been told that there is a hole in the bathroom floor. There are supposed to it was supposed to say three and a half baths in the home. Since my landlord slapped some plywood and vinyl flooring down on the hole in the bathroom of the home we are renting and that is supposedly livable I don't see why I can't do the same and use the other bathrooms. My problem is how am I supposed to know what sort of loan i need to be go for if i cant see the house, can some one explain them in layman's terms The way she has been advertising the house is seems to be able to go ahead and be moved in. Other properties in this area that need extensive renovations/ repairs have been advertised as such. Even one that is livable just needs a lot of work with cosmetic things even states that. This has been nothing but a frustration for my whole family since we have multiple family members willing to invest in this house. ******************OK after making some more phone calls. The home CAN be lived in right now. So it is not uninhabitable. This makes me even more confused on the loan stuff. Again I thought that the FHA loans were supposed to be good for fixing up houses like this.

Posted by: Angry Bird on 2012-01-27, 11:06:22

They are not giving you the respect you deserve. This is extremely clear. You need to call any bank and make an appointment to get pre-qualified for a mortgage. With FHA and VA the home must be 100% livable. No broken toilets, ac units, etc. Plenty of people buy conventional homes with slight damage. You are aware that conventional loans require 10% to 20% down - right? Get that pre-qualification letter - you'll get that respect.

Posted by: Simpson G on 2012-01-27, 11:09:25

I'm guessing that the problem is that the home is essentially unoccupiable according to bank rules. You may be able to qualify for a fix-it loan (203k). Because the house needs so much work, it's unlikely that it would appraise out for an FHA or VA loan, even if your hubby did qualify for one. benefits.va.gov/ homeloans/ elig2.asp gives you the eligibility requirements for VA loans. Edit: Your mistake. FHA loans are not fix-it loans UNLESS you get the 203k. Holes in floors are NOT minimal damage. A loan will require that such problems are fixed to code, not just patched with linoleum. I don't mean to be rude, but you need a serious reality check. If you don't trust BofA, then contact some other banks. I'm going to guess that they are all fairly similar. At that point, it will be your call to believe them or to belive that they are wrong and you are right. Either way, you end up with no loan and no house. They set the rules, no matter how strongly you believe that the house is ok.

Posted by: Casey Y on 2012-01-27, 11:33:42

So, you have absolutely no idea of the current condition of the interior. It probably is uninhabitable and would require substantial work in order to get a CO (Certificate of Occupancy, if you didn't know). In these cases, you would need a construction loan potentially. Basically, with what sounds like a substantial amount of work to be done, it would not qualify for any "special " loans.

Posted by: kemperk on 2012-01-27, 12:57:22

A; always use a buyer's agent when seeking to buy a home; let him or her deal with the bank's agent.... b; try not to fall in love with any house; it is just a building on land........ yours sounds like a money pit; it has been giving you hints from day one; and that hint is, WALK or RUN AWAY. lots of houses are available that do not require CIA intervention [my bad joke] find something that is EASY to buy luck